HC Deb 30 June 1997 vol 297 cc12-3
11. Sir Teddy Taylor

To ask the Secretary of State for Social Security what plans Her Majesty's Government have to increase the retirement pension beyond the increase in the retail prices index: and if she will make a statement. [4345]

Mr. Denham

We shall announce the uprating of the retirement pension at the normal time. Our manifesto said that we would increase it at least in line with prices.

Sir Teddy Taylor

Does the Minister accept that it would be helpful if the Government could say whether they intend to increase the pension above the rate of the retail prices index in the longer term? In the meantime, will he consider carefully the possibility of linking pension rises to a separate pensioners' price index that takes full account of the special needs and costs faced by elderly people compared with those faced by others in the community?

Mr. Denham

That is an interesting question from an hon. Member who supported the previous Administration for most, if not all, of the past 18 years, during which neither of the two things that he has suggested was done. In contrast to the previous Government, we shall have a review of the central areas of insecurity for elderly people, which will include the basic state pension and its value. Again in contrast to the previous Administration, we will listen to the views of pensioners and pensioner organisations during that review.

Mr. Winnick

Is my hon. Friend aware that about the last group of people who should criticise us on pensions are the Tories, whose behaviour in office was quite disgraceful? Is he also aware that many pensioners believe that they should receive an increase above the retail prices index, that they have a very strong case indeed and that they have a great deal of support on the Government Benches? One hopes that it will not be long before the Government are in a financial position to give pensioners the rewards to which they are perfectly entitled.

Mr. Denham

My hon. Friend is right in his judgment of the previous Administration. We shall increase the basic state pension at least in line with prices. We shall have a review of the central area of insecurity facing pensioners to ensure that we hear their voices and listen to their concerns. We have made it clear that we are committed to examining ways to get more automatic help to the poorest pensioners. I look forward to the cut in VAT on fuel, which will cut pensioners' winter fuel bills.

Mr. Gibb

Are the Government still considering the proposal for a flexible decade of retirement from age 60, which the Secretary of State said before the election would involve a lowering of the basic state pension by £20 a week?

Mr. Denham

My right hon. Friend did not make any such statement before the election. We did say before the election that there are attractions in a flexible decade of retirement and that we would wish to move in that direction. I have no doubt that it is one of the matters that will be considered in the pensions review. I want to make it perfectly clear that there is no question of anybody who is retired today or who retires at state retirement age in future receiving anything other than the right pension for that age.