§ 14. Mr. CorbynWhen she expects to announce the basis on which the state old age-pension will be calculated. [34055]
§ Mr. DenhamWe said in our manifesto that the basic state pension will be retained as the foundation of pension provision in retirement and be increased at least in line with prices. We are considering all aspects of the basic pension as part of our pensions review, which will report later this summer.
§ Mr. CorbynCan the Minister confirm that, since the Conservatives broke the link with earnings in 1980, £11 billion has been taken out of pensioners' pockets; and that to reinstate the link would cost £500 million a year? Reinstatement would eliminate poverty among some people in retirement and reduce the pressure on those approaching retirement to take out expensive and inefficient private pensions instead of relying on state provision. Will the Minister ensure that the pensions review guarantees a return to the link with earnings which the Tory Government so cruelly broke?
§ Mr. DenhamThe pensions review is considering all those issues and we are consulting closely with representatives of pensioners' organisations—something that the Conservatives never did in their 18 years in government. Ahead of the outcome of the pensions review, the Government have taken the unprecedented step of making £200 million available for winter fuel payments this year, and will do the same next year.