HC Deb 15 October 1990 vol 177 c917
15. Mr. Robert G. Hughes

To ask the Secretary of State for Social Security what is his estimate of the latest trend in pensioners' real incomes since 1979.

Mrs. Gillian Shephard

I am pleased to be able to tell my hon. Friend that the latest available information shows that pensioners' average total net incomes grew by over 31 per cent. in real terms in the Government's first eight years of office.

Mr. Hughes

I thank my hon. Friend for her reply. Does she agree that it is very good news for pensioners? They will now know that, over a long period, the Government have taken seriously the standard of living of pensioners. Does my hon. Friend agree also that people who are just above benefit level are nevertheless living on small amounts of money and that, therefore, it is right that the Government should concentrate help on them and not make promises such as those made by Labour Members which they know that they cannot keep?

Mrs. Shephard

My hon. Friend is right when he says that there is a need to target help for pensioners, as for other groups. Pensioners with incomes from savings have seen their incomes increase by 130 per cent. Occupational pension income has also gone up, by 77 per cent. in that time. However, the Government are conscious that not all pensioners have been able to benefit from those increases in income, and that is why my right hon. Friend the Secretary of State has just drawn the attention of the House to the £200 million package last year which helped 2.6 million pensioners.

Mr. Campbell-Savours

May we have an assurance that in next year's uprating of social security benefits and pensions the calculation will be based on this year's September year-on-year retail prices index? May we have an unconditional assurance on that matter from the Dispatch Box?

Mrs. Shephard

The hon. Gentleman knows that the current historical method of calculating upratings ensures that the benefits are protected against price increases over a measured period. In years when inflation falls after the new rates are set pensioners gain—that will be the case this year.