HC Deb 28 February 1994 vol 238 cc642-3
13. Mr. Heald

To ask the Secretary of State for Social Security what representations he has received about the current value of the assets held by the average pensioner household; and what was the comparable position in real terms in 1978–79.

Mr. Hague

We do not have the information on the capital value of pensioners' assets. However, in 1990–91, the latest year for which figures are available, the estimated average weekly income that pensioners received from their savings or investments was £30.30. The comparable figure for 1979 was £11.20.

Mr. Heald

Will my hon. Friend confirm that, in 1979, 62 per cent. of pensioners had additional income from savings and investments?

Mr. Winnick

Reading.

Mr. Heald

I am not reading. That figure has now risen to 76 per cent. Does my hon. Friend agree that that shows that a partnership between the private and public sectors can lever up standards for pensioners? Will he pay tribute not only to the financial and pensions industry but to the pensioners who are prepared to make the effort to provide for their retirement in addition to the state provision?

Mr. Hague

My hon. Friend is absolutely right—even without notes. He points to a significant improvement in the opportunity for and the success of pensioners in saving. The proportion of pensioners with income from savings has risen to 76 per cent. That reflects partly an improvement in their incomes over the years and partly the fact that inflation is lower than they experienced in the 1970s.

Mr. Winnick

Has the Minister seen the report today from the Adam Smith Institute which recommends that pensions be abolished, together with all the other features of the welfare state? Does not that report show the hidden agenda of the Tory Government as, time and again, the Adam Smith Institute's recommendations have been brought about by the Government?

Mr. Hague

The abolition of the state pension has been advocated by at least one Opposition Member, and not just by the Adam Smith Institute. We will read the report from the institute with interest, but the Government are engaged in sustaining the welfare state, not in ending it.

Mr. Jessel

Is not the biggest form of pensioners' savings very often the house in which they live? Will my hon. Friend see what can be done to improve the position of the large number of pensioners living in valuable houses who have low incomes?

Mr. Hague

My hon. Friend is right to say that home ownership is an important part of pensioners' assets. Indeed, 94 per cent. of pensioners who own their home own it outright. That has contributed to the general improvement in pensioners' financial position.