The Department of Work and Pension's announced yesterday that the basic state pension will go up to £84.25 (from £82.05) and the level of Pension Credit guarantee element will increase to £114.05 (from £109.45) from next April.

Age Concern's Director-General‚ Gordon Lishman‚ said: "The Government has once again failed to give pensioners a decent increase in the basic state pension. Small increases to an already inadequate basic state pension are not good enough. Two million pensioners live in poverty and don’t have the money in their pockets to meet basic living costs. The Government must commit to radical reform of the pensions system which delivers a higher basic state pension to more pensioners‚ and reduces the growing reliance on means-tested benefits.”

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