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Saving changes: 'It's time Britain helped pensioners'

19 March 2014 Last updated at 15:36 GMT

George Osborne has unveiled measures to boost the income of pensioners and savers, hit by low interest rates.

In a surprise announcement at the end of his Budget speech, Mr Osborne said cash and shares Isas were to be merged into a single New Isa with an annual tax-free savings limit of £15,000 from 1 July.

"Many pensioners have seen their incomes fall as a consequence of the low interest rates that Britain has deliberately pursued to support the economy and it's time Britain helped them out in return," he told MPs.

He also outlined a new Pensioner Bond paying market leading rates to be available from January 2015 to all people over 65, with interest rates of 2.8% for one-year bonds and 4% for three-year bonds.