Cameron crows over pension rise

Prime Minister David Cameron has hailed a £5.30 weekly increase for state pensions that comes into force today as proof of the government’s “commitment to the elderly”.

Basic rate payments will increase to £107.45 a week after inflation in September – the month when the uprating of benefits is set – hit 5.2 per cent.

It comes after intense criticism of the government’s treatment of pensioners in the wake of last month’s Budget.

Chancellor George Osborne announced he was “simplifying” tax arrangements by phasing out age-related allowances, a move that was instantly dubbed the “granny tax” by critics.

Mr Cameron said: “We owe older people in society our respect, our support and our care. That’s why from the start I’ve made sure this government protects pensioners and gives them the help they need.

“We brought in the triple-lock to restore the link between pensions and earnings – guaranteeing the basic state pension rises by whichever is highest out of rises in prices, average earnings or 2.5 per cent.

“Today we’re delivering with a 5.2 per cent increase in the basic state pension, an extra £5.30 a week, the largest cash rise in history.”

The payment increase will cost the Treasury an extra £4.5 billion this year.