Chancellor Alistair Darling has said that the basic state pension will increase by 2.5 per cent in 2010.

The basic state pension is to increase from April 2010 by 2.5 per cent, which equates to a rise of £2.40 per week, or 34p per day.

For a single pensioner, the weekly pension will rise from £95.25 to £97.65, while a pensioner couple will see a rise to £156.16 from the current £152.30.

The industry, however, has described the state pension rise as a ‘disappointment’, arguing that for many people, their own personal rate of inflation is far higher than the national average – their income is simply not matching their escalating living costs.