THERE is a lot to like about the Government’s radical plan to introduce a flat-rate pension for all.

Single people currently receiving about £97 a week would see the payment rise to £140 under the proposals put forward by Lib Dem pensions minister Steve Webb and endorsed yesterday by Business Secretary Vince Cable.

And there would be the added attraction of a much simpler system which avoids means-testing and saves on administration costs.

But there has to be a catch, doesn’t there? This is the Government of austerity, striving to be remembered for forcing the country to tighten its belt, not for handing out extra cash.

There is an adage that if something seems too good to be true, it usually is. It is certainly hard to see how pension payments could be increased for so many people without it costing the country dearly.

Saving on administration costs alone surely wouldn’t be enough.

There is also a fundamental question of fairness: why should those who have contributed national insurance all their lives receive the same pension as those who have not?

It is a fair question though and we have sympathy with the argument that women who stopped working to have children should not be penalised.

It is an interesting and worthwhile debate but the truth is that there is a great deal to be worked out before these plans become reality – not least how the country will be able to afford the change.