Pensioners are set for a £4 billion boost next year as the Labour Government confirmed the biggest rise in the Basic State Pension since 2001 today, on top of £900m in Christmas Bonuses and a £575m increase in Winter Fuel Payments.

From April, the State Pension will go up by 5%, ensuring someone on a full pension will see their weekly income go up from £90.70 to £95.25. Ministers also confirmed that Pension Credit will increase by the highest amount ever, up from £124.05 to £130 per week.

The Labour Government confirmed today that most National Insurance benefits will rise by 5 per cent, and most income-related benefits will be uprated by 6.3 per cent, providing real support to people in the current economic climate.

Labour's Minister for Pensions and the Ageing Society, Rt Hon Rosie Winterton MP said:

"In these tough times, the Government will continue to give real help to pensioners.

"I want to do all we can to help those pensioners on the lowest incomes, and the increase in Pension Credit will mean that we can lift even more people out of poverty. We have also made it easier and quicker for those eligible for Council Tax Benefit and Housing Benefit to get what they are entitled to."

The increases follow additional help announced in the Pre-Budget Report where eligible pensioners will have their Christmas Bonus increased for this winter from the traditional £10 to £70.

This will be on top of the increased Winter Fuel Payments which pensioners have been receiving in recent weeks where households with someone aged between 60 and 79 will get £250, and £400 for households with someone 80 and over.

Rosie Winterton went on to say:

"We are determined to take action to help pensioners get more cash to help them through winter and ease the worries they have about bills. Those who argue we should do nothing are wrong - as I am sure the many people who will be getting their Winter Fuel Payment, and the Christmas Bonus that will be included in their increased State Pension in the New Year, will agree."

Labour's Minister for Employment and Welfare Reform, Tony McNulty, said:

"Today's uprating continues our progress towards a fair and inclusive society that offers opportunity and independence for all. It reinforces our commitments to tackle poverty and exclusion and ensure security in retirement."

There are a number of Government helplines people can ring to find out what they are entitled to:

For information on Council Tax Benefit and Housing Benefit call  0800 99 1234.

For the information on the Christmas Bonus call 0800 141 259.

For information on Winter Fuel Payment call 08459 15 15 15.