The introduction of a flat rate pension could happen in 2015 or 2016 and be worth at least £155 a week to pensioners.
According to the BBC, the details of the flat rate pension will be unveiled next week. The reforms will provide a boost to the current state pension which is £97.65 a week but topped up to £132.60. Couples receive £202.40 a week.
The flat rate pension was expected to be £140 per week but the BBC said it could increase in line with inflation. Last week’s Budget confirmed the pension would be available for new pensioners.
The BBC said: ‘It is assumed that inflation-linked increases will take the means tested guarantee up to around £155 by the middle years of this decade.’
‘The government may decide to bring in the new single pension at a slightly higher level.’