The Conservatives have announced that they will increase the basic state pension by £7 per week, and restore a link with earnings. They would also put an end to the law that forces private pensioners to buy an annuity at the age of 75. This would mean a rise in income of £11 for a couple on a basic state pension.
The party is intending to pay for the rise by bringing means testing and the New Deal schemes to an end. It is expected to cost up to £180 million over four years. They also announced that they would guarantee free long-term care for the elderly after three years, regardless of the value of any house or savings.
Our view
These are great proposals, but is it just headline vote grabbing or would it be real. It was the Tories who removed State Pension Increases linked to earnings after all.
Learn more about State Pensions in our State Pension Centre .