Chancellor George Osborne delivered "unprecedented support" for pensioners, but nothing for pension savers. The basic state pension will rise to £119.30, a rise of £3.35, the greatest increase in 15 years. Mr Osborne said the triple lock will be maintained. This means the state pension will rise in line with the higher of earnings, inflation or 2.5 per cent.
Richard Priestley, executive director of retirement income at Canada Life, said: "The move by the chancellor will protect the incomes of pensioners, helping cement the rapid income gains they have enjoyed of late. In the last 20 years, retired households have seen their incomes climb to record highs, up by 77 per cent in real terms. This has far outstripped growth seen by the rest of the population. The state pension alone makes up two-fifths of a typical household's income, so this latest move is a boost pensioners will certainly enjoy."
The chancellor also confirmed that the new single-tier state pension that will replace the basic state pension and the additional state pension from April 2016 will be £155.65 a week.