HC Deb 05 March 1990 vol 168 cc571-2
1. Mr. Harris

To ask the Secretary of State for Social Security what was the increase in pensioners' average net incomes from (a) 1974 to 1979 and (b) 1979 to date.

The Secretary of State for Social Security (Mr. Tony Newton)

Between 1974 and 1979, pensioners' average total net income rose by 3 per cent. in real terms. Newly available figures show that between 1979 and 1987 it rose by more than 30 per cent. in real terms.

Mr. Harris

Given the significant difference between those two figures, will my right hon. Friend take it from me that the substantial record of this Government is far more important than the rhetoric of the Opposition, especially as the figures show that the Labour party has a miserable record in this important area?

Mr. Newton

I am grateful for my hon. Friend's comments. Taking the picture as a whole, it is certainly striking how much better pensioners have done under this Government than under the previous Labour Government. We have sought, by using income-related benefits, to assist, in particular, pensioners who do not have savings income and occupational pensions.

Mr. Battle

Will not the Secretary of State admit that the removal of the transitional arrangements for housing benefit has meant that this year's increased pension for pensioners on income support has been wiped out? They are worse off this year—with the increase—than they were last year. Is not that the reality for many pensioners today?

Mr. Newton

I am not sure whether the hon. Gentleman is talking about the housing benefit transitional protection arrangements, but the change in those that is intended to take place in April represents a smaller proportion of the pension increase this year than last, so his point does not stand up to examination.

Mr. Andrew Bowden

Although I congratulate my right hon. Friend on what has been achieved, will he look carefully at the position of the wartime generation of pensioners, many of whom were unable to save or to own their own homes, and many of whom have not shared fully in the increased standard of living of the vast majority of pensioners?

Mr. Newton

Let me make two points. First, the figures to which I referred show that the proportion of pensioners in the lowest fifth of income distribution fell sharply between 1979 and 1987. Secondly, as I said in answer to the first supplementary question, we have sought to direct extra help to those who do not have savings and occupational pensions income.

Mr. Flynn

The Minister will realise that we are less impressed by the figure of 30 per cent. because we read yesterday that top people's incomes have increased by 28 per cent. in a single year. Does the right hon. Gentleman agree that under Labour basic pensions increased by 20 per cent., whereas under this Government they have increased by a miserly 2 per cent? Is not the truth that the rich are becoming richer on a prodigious scale while the poor are becoming poorer very rapidly? Is not the Minister filled with self-disgust at his role? Is not he tempted to leave office and do a runner or, as we say in Wales, do a Walker?

Mr. Newton

On the latter part of the hon. Gentleman's remarks, I congratulate him on his ingenuity in asking the question and return a firm no to it. As to the rest of his question, he cannot have been listening to what I said. The other point that emerges from the 30 per cent. figure is that pensioners' incomes have been rising faster than those of the population at large.