The basic state pension is paid to all who have made sufficient national contributions. It is uprated annually by the rate of inflation.

For the year 2004/5 the annual payment is £6,617 for a couple and £4,139.20 for a single person.

Because they are only increased in line with inflation they will not keep pace with earnings, and will, relatively speaking, decline in value over the years to come.

Additionally, there is the State Earnings Related Pension Scheme (SERPS) and the new State Pension 2. Mr Brown wants to implement a means tested Guaranteed Minimum Pension though this is too difficult to comment on.

If you are uncertain as to what benefits you will get then you should complete a BR19 form which can be obtained either from the post office or on the below link:

The Pension Service