The £140 universal state pension

Vince Cable has been on Radio 4 this morning outlining plans being brought forward by Lib Dem Government Minister Steve Webb to introduce a universal State Pension of £140 to all those of pensionable age, regardless of previous contributions.

Currently, many millions of people, especially those with lower National Insurance Contributions due to career breaks to look after children, do not receive a full state pension and are forced into the Means Testing system, which is off-putting for the recipient and expensive to administer and operate. the current system means many people do not receive the pension they are entitled to as they do not go into the means testing system, leaving themselves with a pension that is too low to pay for a reasonable quality of life.

According to Government sources, instead of basing pensions on means testing, the new system would be based on residency, with British citizens or people who have been living in the country for a certain number of years qualifying.

Treating pensioners fairly and simplifying the benefits system are key tasks for the Government. We should never be in the position of the last Labour Government giving a pension rise of just 75p a week. We need to treat pensioners with respect: Labour failed to do so. It seems that the coalition Government and especially the Liberal Democrat members of it, are driving towards a fair deal for pensioners.