OAPs to rake in biggest pension rise for 15 years: Chancellor to increase state figure by £3.35 a week from April - but there is bad news for those who spend winter abroad 

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More than 13million OAPs will benefit from the biggest rise to the state pension in 15 years.

But retirees who spend their winter in the sun, as well as those with modest savings, will have some benefits taken away.

The Chancellor yesterday confirmed plans to increase the state pension by £3.35 to £119.30 a week from April.

The Chancellor yesterday confirmed plans to increase the state pension by £3.35 to £119.30 a week from April in his Autumn Statement 

It is the biggest real term rise since 2001 and the result of the so-called ‘triple-lock promise’. This guarantees state pensions go up in line with the highest of inflation, earnings growth or 2.5 per cent.

The Chancellor also set the new flat rate state pension, to be introduced from April next year, at £155.65 a week. 

Under the new deal everyone reaching state pension age, who has built up 35 years of full National Insurance contributions will receive the full amount.

However there was bad news for retirees who spend part of the year abroad.

Those who claim pension credit, a top-up that boosts weekly income if it’s below £151.20 for single people or £230.85 for couples, are to lose their payout if they spend more than four weeks of the year abroad. 

'DELIGHTED' WITH PENSION RISE

Pensioner Susan Sellors is delighted by the increase in the state pension.

The grandmother-of-three, pictured, said the extra money will make life that little bit easier.

The 70-year-old, who lives alone in a £150,000 four-bedroom semi-detached home in Derbyshire, depends on her state pension and pension credits.

Mrs Sellors said: ‘That’s great. That’ll pay for some insurance or something, it’ll write something off like the water bill.

‘I can even have my gas boiler refurbished or my burglar alarm and I have just never found the money for that. It’s just a bit of comfort.’ 

Susan Sellors, 70, who depends on her state pension, is happy with the increase in the state pension

The move will hit pensioners who spend the winter in Spain or Portugal.

However the limit will be extended up to 26 weeks in some circumstances, for instance following the death of a relative or if a dependent requires medical treatment. 

Those who claim housing benefit will also face a similar curb. 

The Treasury forecasts both limits on time spent abroad will save it £80million over five years.

In addition the Government is to take the axe to a payout called Savings Credit. 

This is paid to retirees on modest incomes as a reward for putting away money for retirement. But from April the amount they will receive is going to be cut by £1.75 a week for single people to £13.07 and by £2.68 for couples to £14.75.

This will save the Treasury around £635million over five years, according to forecasts. 

The payout will be scrapped for new claimants from April.

Tom McPhail, of investment company Hargreaves Lansdown, said: ‘This Budget is broadly good news for pensioners. 

'The Chancellor is continuing to ensure pensioners are keeping pace with the rest of the population and in some cases are enjoying better standards of living than the rest of the population.’

But pensioner campaign groups were less impressed. 

Neil Duncan-Jordan of the National Pensioners Convention said: ‘Millions of pensioners are going to receive an increase to their pension of just £3.35 a week. 

'That is not a great deal by any stretch of the imagination.’