OLD-AGE pensioners are set for an inflation-busting rise in 2010.

One of a raft of changes to the benefit and contribution rates brought to the States by Social Security yesterday was a proposal that from January, the standard rates of pension and contributory social insurance benefits be increased by 2%.

That will add £3.40 per week to the full-rate single pension. It will add £1.75 per week to the so-called married woman’s pension and will mean a £5.15 per week increase for a couple on full pension.

After the debate, Social Security minister Mark Dorey (pictured) said his department was reacting to the times.

‘We decided to do this because of the economic circumstances and thought that a 2% rise was appropriate at this time,’ he said.

The pension rate is usually based on RPI – the indicator of the cost of living based on a spectrum of the prices of items and necessities – but yesterday’s move broke the mould.

‘It is going above RPI but is below RPIX,’ he said. RPIX ignores mortgage costs.

‘We can’t do this every year and our long-term average should be RPI plus one. We have to get back to that average.’