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Wednesday, 3 October 2023

Budget 2011 - pensions and savings

Chancellor George Osborne has announced the government's plans for pensions and savings in his 2011 Budget speech. He has proposed a new flat-rate pension and has accepted the recommendations of the Hutton Report into public sector pensions as a basis for consultation with public sector workers, trades unions and others

State Pension system - proposed changes

The Chancellor has proposed to simplify the State Pension system into a new flat-rate pension based on contributions. The new system is estimated to be worth around £140 per week. The new system will not apply to current pensioners.

State Pension Age

The Budget announced no further changes to the State Pension Age, which is due to rise to 66 by April 2020.

The government will seek to create a new, more automatic mechanism for future increases in the State Pension Age based on regular, independent reviews.

Public service pensions

The Chancellor said he accepts the recommendations of the Hutton Report into reform of public sector pensions as a basis for consultation with public sector workers, unions and others. Proposals will be set out in autumn 2011.

Individual Savings Account (ISA) and Junior ISA

Annual ISA subscription limit

2010-11
£ per year

2011-12
£ per year

Overall limit...

£10,200

£10,680

...of which cash

£5,100

£5,340

...of which stocks & shares

£10,200

£10,680

Junior ISAs

New tax-advantaged savings accounts for children called Junior ISAs were announced in 2010, and are expected to be available from autumn 2011. UK resident children aged under 18 who do not have a Child Trust Fund will be eligible for a Junior ISA. Details of the accounts will be published in the week commencing 28 March 2011.

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