§ 10. Mr. PickthallTo ask the Secretary of State for Social Security what is the amount in cash per week of the compensation for value added tax on fuel, over and above the general income support increase, for a pensioner on income support.
§ Mr. HagueIn April, income support will increase by an extra 50p per week for single pensioners and 70p for couples. By April 1996, the extra for VAT will be worth some £1.40p and £2.00 per week respectively.
§ Mr. PickthallDoes the Minister agree that although most means-tested benefits will be upgraded in April by 3.9 per cent., which includes the 4 per cent. VAT compensation, retired pensioners on income support or those in receipt of invalidity pensions will receive an increase of 3.5 per cent. on their pensions, plus 50p if they are single or 70p if they are a couple? Does he agree that that amounts to 26p extra per week? Can he estimate, for the benefit of the House, how much gas, electricity or solid fuel could be bought by that most needy and fuel-dependent group in our society for 26p, the price of a packet of crisps?
§ Mr. HagueThe hon. Gentleman has got his arithmetic a little mixed up. When considering the 50p or 70p per week extra that will be given to pensioners to help with VAT on fuel, it would be illogical to deduct the extra amount that is also given in income support. All pensioners, whether in receipt of income support or the full basic pension, will receive 50p per week if they are single or 70p if they are a couple.
The total income support rate for pensioner couples will rise by £4 per week from £95.25 to £99.25, which is an increase of 3.9 per cent. That is a lot more than that received by many people in work. All that adds up to a package which is a good deal more generous than that famously suggested by the Opposition, who said that they could give that help through an extra 50p on pensions.