The government's plans to reform the current state pension into a simple single-tier pension.
On 14 January 2013, the government published a White Paper – The single-tier pension: a simple foundation for saving. It outlines proposals to reform the State Pension into a single-tier State Pension. The White Paper also includes proposals for a regular and structured mechanism with which to consider changes to the State Pension age in the future.
On Monday 18 March, the government announced that, subject to Parliamentary approval of the Pensions Bill, the single-tier pension will be introduced in April 2016.
The single-tier fact sheet, which gives a simple explanation of the features of the single-tier pension, and the note on National Insurance credits, are based on the start date of April 2016. The other documents published here reflect the position at the time they were published (which was that the single-tier pension would be introduced in April 2017 at the earliest).
This reform will affect people who reach State Pension age from the time it is introduced. Current pensioners and those reaching State Pension age prior to introduction of the single-tier pension will not be affected and will continue to receive their State Pension in line with existing rules.
These reforms will provide a foundation to support automatic enrolment launched in October last year, which will see six to nine million people saving more, or saving for the first time, into an occupational pension.
The Pensions Bill containing provisions to reform the State Pension system and implement the single-tier pension was introduced to Parliament on 9 May 2013.
Note on the cohort of women born between 6 April 1951 and 5 April 1953
We’ve published a note that explains the effect of the single-tier proposals on women born between 6 April 1951 and 5 April 1953. It takes into account the government’s announcement that the single-tier pension will be introduced in April 2016.