Pensioners (Hansard, 18 November 1991)

§ 8. Mr. John Browne
To ask the Secretary of State for Social Security what is the total value of extra help, including measures in the 1991 uprating statement, which has been directed to less-well-off pensioners since 1989.

§ Mr. Newton
The proposed additions to the income support higher pensioner premium from next April will increase social security expenditure by £60 million. That means that the total cost of help for pensioners on low incomes, over and above that resulting from normal upratings since 1989 will amount to about one third of a billion pounds.

§ Mr. Browne
Will my right hon. Friend confirm that the proportion of pensioners who claim income support fell significantly over the 10 years beginning 1979? Will he please tell the House what percentage rise the lowest 20 per cent. are receiving in real terms?

§ Mr. Newton
A study of the incomes of the least-well-off pensioners will show that there has been an increase of about 15 per cent. in the standard of living of the lowest quintile. I hope that that is the sort of information that my hon. Friend wants. Pensioners' living standards have been rising faster than those of the population as a whole. That reflects not only social security policies, including those touched on in the original question, but the greatly improved income from savings and occupational pensions, which have been such a feature of the past 10 years.

§ Mr. O'Brien
Will the Secretary of State consider reinstating the disregard for retired mineworkers and their widows? They have lost income through the concessionary fuel allowance and, therefore, in many instances are being driven into the lowest benefit possible—income support. If the allowance for fuel were reinstated, it would lift their benefits and standard of living. Would he give that serious consideration?

§ Mr. Newton
The hon. Gentleman, with his experience, will know that we went to considerable trouble earlier this year to try to ensure that the changes being made by British Coal did not have adverse effects on pensioners. I am sure that the right approach overall is the one that we have adopted—that is, to put additional resources into income support premiums to help low-income pensioners regardless of in which industry they may have worked.