Flat-rate pension

This term is being used more frequently as a result of reforms to the state pension being introduced by the coalition government in 2011. It is also known as the universal state pension.

In an attempt to simplify the pension system the idea is to pay all qualifying recipients of the state pension a flat-rate amount. Initially a figure of £140 was suggested but as the system is unlikely to be in place until 2015 or 2016 the government is considering increasing this amount to £155.

In 2011, the current basic state pension is £97.65 but as this can be topped up by pension credit to £132.60 a week, the new system will simplify the procedure allowing all pensioners who have paid the required National Insurance to receive a flat-rate amount.

	A guide to the flat rate state pension The flat rate state pension is the most popular alternative for state pension reform in the UK but what is it, how will it work and when will it be introduced?
	Proposed flat-rate pension 'not enough' at £140 a week The proposed flat-rate state pension is welcomed by Standard Life but leaves many Britons unimpressed.
	Government to announce new flat-rate state pension The government is preparing to announce full details of a simplified state pension that pays a flat-rate and that will be introduced in 2015 or 2016.
	IDS to announce £140 flat-rate pension plans Iain Duncan Smith, the Works and Pensions Secretary, will announce today in a speech to Age UK that the pension system needs to be simplified and people encouraged to save for their retirement.
	Call for a flat-rate state pension Creating a simple flat-rate state pension should be the key starting point for the reform of pensions.