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The value of the basic state pension rises every April.
The unemployed will benefit neither from tax cuts nor from pension rises.
So the Chancellor entrenched the "triple lock" under which the state pension rises by 2.5 per cent, earnings or prices, whichever is higher.
Pension rises will be indexed to inflation rather than as a combination of inflation, the pensioner living cost index and as a percentage of average weekly male earnings.
Dick Diamond, a reader in Bay City, Ore., wrote to say that his pension rises at a fixed rate of 2 percent per year.
The triple lock system means that the state pension rises by the highest of consumer prices index (CPI) inflation, average wages or 2.5 per cent.
Similar(38)
The pension rise will be in place.
Blair apologised for the 75p pension rise a decade ago.
Since 1997, Labour have similarly let the pension decline, including the famous 75p pension rise.
The increase will see the full basic state pension rise by £5.30 to £107.45 a week in April 2012.
Under auto-enrolment, companies will have to pay a minimum of 1% of every employee's salary into a pension, rising to 3% by 2017.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com