LONDON (Reuters) - British finance minister Jeremy Hunt said on Thursday he would raise state retirement and welfare benefits payments in line with inflation.
Hunt said he would raise benefit payments by 10.1%, which would cost about 11 billion pounds ($12.99 billion).
The government was also committed to the 'triple lock', a government promise to raise publicly-funded pensions by whichever is higher of average earnings growth, consumer price inflation or 2.5%, he said.
"In April, the state pension will increase in line with inflation," Hunt told parliament as he made a speech on his tax and spending plans. "To the millions of pensioners who will benefit from this measure I say, now and always, this government is on your side."
($1 = 0.8470 pounds)
(Reporting by Andrew MacAskill; editing by Michael Holden)