Millions of old people will feel "let down" by the government's announcement of a �2 a week rise in the basic state pension, a pressure group says.

Ministers say the rise, which will push pensions up by �100-a-year for single pensioners and �160 a year for couples, is above the rate of inflation.

I'm afraid that an increase of �1.95 a week will be seen as evidence that the government just isn't listening to what older people want

Joe Harris

But the National Pensioners Convention, which has pressed for a restoration of the link between pensions and earnings, described the increase as "totally inadequate".

Work and Pensions Secretary Andrew Smith said it was the third year that pensions had gone up by more than inflation.

But Joe Harris, the NPC's general secretary, said state pensions would go up by �1.95 a week, making a single person's pension �77.45 and a couple's pension rise by �3.10 to �123.80.

'Not a vote winner'

Mr Harris said: "This increase is totally inadequate when it comes to ending the hardship faced by millions of older people and it just goes to show how important it is to have the state pension relinked to earnings.

"The government has done the bare minimum that they pledged to do, but I doubt that this will win many pensioner votes.

"Millions of older people fell let down and are demanding a state pension that gives them real dignity and security in retirement.

Mr Webb says pensions will only be worth 75p more in 50 years time

"This means having a pension that is at least in line with the minimum income guarantee and I'm afraid that an increase of �1.95 a week will be seen as evidence that the government just isn't listening to what older people want."

Steve Webb, the Liberal Democrats' pensions spokesman, said figures commissioned from the House of Commons library showed that the state pension will only rise by 75p, in today's money, over the next 50 years.

'Shocking figure'

In the chamber he pointed out that the pension went up by �5 when there was an election on, but only by �2 from next April.

But outside, Mr Webb said the current pension of �75.50 a week in today's prices will increase to �76.25 in 50 year's time.

Mr Webb says the library showed the increase will result from the government's long-term policy of increasing the pension by 2.5% or inflation, whichever is higher.

"The shocking figure will bring back memories for many pensioners of this government's 75p pension increase.

"The government has finally admitted that it sees no future for the basic state pension.

"Over the next 50 years, the economy is predicted to more than double and this new admission reveals that pensioners will continue to get left further and further behind."

Reforms

Mr Smith also told MPs that National Insurance benefits are set to rise by 1.7%, in line with the retail price index, while income-related benefits will go up by 1.3%.

The incapacity benefit system will be reformed following a huge increase in the numbers of people claiming it, he said.

The move was welcomed by shadow work and pensions secretary David Willetts.

But he also accused ministers of being caught in a "cycle of over-spin, over-hype, failed pilots and failed initiatives".