HC Deb 08 June 1998 vol 313 cc707-8
21. Mr. John Hutton (Barrow and Furness)

What assessment she has made of inequality of income among pensioners. [42948]

The Parliamentary Under-Secretary of State for Social Security (Mr. John Denham)

We want today's and tomorrow's pensioners to enjoy security in retirement. Income inequality between the best and worst-off pensioners has grown since 1979, and estimates show that this inequality is set to widen in future, on the basis of current policies.

A key objective of our pensions review is to tackle the growth in pensioner inequality, to ensure that pensioners have an adequate income in retirement and that they share fairly in rising national prosperity.

Mr. Hutton

I am grateful to my hon. Friend for that reply because it confirms that it is the Government's policy to reverse the widening trends of pensioner inequality. What progress is being made, in the nine pilot projects, in determining why 1 million pensioners currently fail to claim their income support entitlement? Will he make it his policy to reverse the appalling legacy that we inherited from the previous Government, so that pensioners, especially in my constituency, may look forward to dignity and security in retirement?

Mr. Denham

My hon. Friend is right to draw attention to the importance of the pilot projects. For 18 years, the previous Administration made no attempt to ensure that the poorest pensioners received the support to which they were entitled. It is important that we find the best ways to get more automatic help to those pensioners. I am informed that it is a little early to draw conclusions from the pilot projects, which started in April; we shall get the full report when they have run for six months. However, if we are able to report on early progress and early lessons, I shall certainly wish to keep my hon. Friend and the House informed of that progress.

Mr. John Bercow (Buckingham)

I hope that the hon. Gentleman will agree that in seeking—rightly—to tackle inequality among pensioners, it is important to avoid giving assistance to those pensioners who do not need it, are not entitled to it and, in many cases, do not want it. In that context, can he tell the House today how many cheques for winter fuel payments were sent out in error, the cost of that error, and the proportion of that unwarranted cost that has been written off by his incompetent Department?

Mr. Denham

I shall write to the hon. Gentleman with the exact figures, but my recollection is that about 10,000 payments were made that were not in accordance with the legislation and regulation at that time. That is regrettable, but it was a tiny proportion of the 10 million payments that were made to pensioners in 7 million households. Regarding recovery, each case is being treated on its individual merits, and that is obviously the right way for us to proceed.