HC Deb 31 January 1994 vol 236 cc602-3
2. Mr. Harry Greenway

To ask the Secretary of State for Social Security what was the average value of an occupational pension in 1979, and in the latest year for which figures are available.

The Parliamentary Under-Secretary of State for Social Security (Mr. William Hague)

It is estimated that, at 1991 prices, the average value of occupational pensions was £41.90 per week in 1979 and £63.30 per week in 1991, an increase of 51 per cent.

Mr. Greenway

Are not those figures a matter for congratulation? Will my hon. Friend confirm that more than 70 per cent. of all recently retired pensioners now have an occupational pension, compared with 50 per cent. of all pensioners in 1979? Will he confirm also that the Government will continue their caring Conservatism and look after pensioners on the basic pension, as they always have done?

Mr. Hague

My hon. Friend is absolutely right. Not only did the average income from an occupational pension grow throughout the 1980s but, as he says, the percentage of pensioners who have an occupational pension has also grown to about 70 per cent. of recently retired pensioners. My hon. Friend is right also to draw attention to the importance of state provision of the basic pension. Our policy remains to maintain the value of the basic state pension and to encourage additional provision on top of it.

Mr. Frank Field

The whole House notes with pleasure the figures that have just been given, but do the Government share the Opposition's concern over the fact that it appears that millions of former pensioners in occupational schemes and in the state earnings-related pension scheme have been badly advised to opt out of those pension schemes? Do the Government regard that as a serious development? If so, what do they intend to do?

Mr. Hague

The extent to which that might have happened has not yet been determined. As the hon. Gentleman will know, my right hon. and hon. Friends in the Treasury have asked the Securities and Investments Board to undertake a review. If such bad advice has been given, the Government will take it extremely seriously and will look to the Securities and Investments Board to come up with proposals to remedy what has happened.

Mr. Jacques Arnold

Will my hon. Friend confirm the amounts over and above inflation to be paid to pensioners to protect them from the imposition of VAT on fuel?

Mr. Hague

Yes. My hon. Friend draws attention to an important point. In the forthcoming uprating of the state pension, 50p per week will be given to single pensioners and 70p per week will be given to couples over and above the normal uprating in order to give extra help with VAT on fuel.