Budget 2012: Single-tier £140 state pension to be introduced

Chancellor George Osborne has given the green light to proposals to introduce a single-tier state pension worth around £140 a week for future retirees.

In his Budget speech today, Osborne paid tribute to Liberal Democrat pensions minister Steve Webb as he confirmed the Coalition will press ahead with the reforms.

He said further details of the proposal will be published in the spring.

The Department for Work and Pensions first put forward proposals for a flat-rate state pension for future retirees in a green paper in April last year.

It remains unclear how people who have contracted out of S2P and Serps will be treated.