Is there still a case for the State Pension?
Even though the government has announced a substantial rise in the State Retirement Pension (SRP) from April 2001, it continues to insist that future increases should be linked to prices rather than earnings. At the same time, it is also promoting the means-tested Minimum Income Guarantee (MIG) as the tool to tackle pensioner poverty. Worth much more than the SRP and linked to earnings, a vigorous MIG represents a very different way of providing pensioners with a basic income. In this briefing paper, Peter Kenway and Mohibur Rahman assess the differences between the SRP and the MIG and consider what the implications might be of the course that the government has now set.