2011 Budget states acceptance of Hutton's recommendations into pension benefit

In the 2011 Budget, the Coalition Government have outlined their acceptance of John Hutton's recommendations in his final report, which looks at the pension benefit.

Hutton's recommendations have been accepted as a basis for consultation with public sector workers, unions and others.

Chancellor of the Exchequer George Osborne stated a belief that the House should recommend similar changes to the pensions of MPs and that the state pension system should also be addressed.

Osborne stated a new single-tier pension would be based on contributions and would be a flat rate so people know what to expect.

The new single-tier pension would be worth around £140 a week, would not apply to current pensioners and will take years to come into effect.

Osborne said: "If people can’t work out what they’re going to get in retirement, or how much will be clawed back by the means-tests – then they can’t work out what they need to save."

Further information:
HM Treasury