§ 14. Mr. BowisTo ask the Secretary of State for Social Security what is the average pensioner's income from savings.
§ Miss WiddecombeThe latest figure, for 1988, shows that the average pensioner's income from savings is £19.90 per week.
§ Mr. BowisDoes my hon. Friend agree that many pensioners have built up savings throughout their lives, partly from income and, occasionally, from redundancy payments, and that it is rare that that income from savings is unearned? Is she aware of the great unease among pensioners about the fact that an additional surcharge may be put on their fairly modest level of income from savings? Will she confirm for those pensioners that their savings are safe with us?
§ Miss WiddecombeIndeed, I would say that savings in general are safe with us. Those who are most likely to be affected by the Labour party's proposals to surcharge savings are those who are just coming up to retirement. They will want to save, but they will not enjoy the exemptions provided to pensioners. They have reached the crucial point at which they can save because they have discharged other liabilities, but they will find such saving difficult.
On savings, the one thing that we do not want is a return to the Labour Government's policies of the 1970s. We do not want to see pensioners' or anybody else's savings eroded by the inflation levels sustained by the then Labour Government. It is worth noticing that since the Government came to power, pensioners' income from savings has risen by 8.6 per cent. It would be a dim prospect for them if we returned to the policies of the Labour party.