§ 17. Mr. MorganTo ask the Secretary of State for Social Security what was the increase in real terms in basic pensions (a) from 1974 to 1979, and (b) from 1980 to 1989.
§ Mr. ScottChapter II, Mr. Speaker. As has already been indicated to the House, under the Labour Government the level of the basic pension increased by 20 per cent., and under the present Government by 2 per cent. Nevertheless, I confirm the figures given earlier by my right hon. Friend the Secretary of State for Social Security, showing that pensioners' standard of living—that is what matters—has increased by 22 per cent., compared with 3 per cent. under the Labour Government.
§ Mr. MorganThe Minister's reply highlights the 20 per cent. increase achieved under the last Labour Government, compared with the 5 per cent. improvement seen under the present Government. Does the Minister agree that, because of their upbringing, the elderly are particularly resistant to applying for means-tested benefits, it is important that the Government give some attention to setting a target by which time pensioners will be able to enjoy a 20 per cent. increase in real terms in their basic old-age pensions?
§ Mr. ScottWhat matters to pensioners is their total standard of living, which has been increasing, and is increasing, under the Government. Under Labour, inflation wiped out the savings of a whole generation of pensioners, and that affected their standard of living more than anything else.