§ 2. Mr. Austin Mitchell (Great Grimsby)If he will make it his policy to uprate the state pension in line with the higher rate of earnings or the retail prices index. [53467]
§ The Minister of State for Social Security (Mr. John Denham)We are committed to retain the basic state pension as the foundation of pension provision in retirement and to increase it at least in line with prices. We have already honoured that promise with last year's increase. A statement on uprating for next year will be made in due course.
§ Mr. MitchellDoes my hon. Friend agree that a strong earnings-related pension scheme is the necessary basis for both security in old age and the development of public-private pension partnerships? Does he further accept that, if the national insurance scheme and the Treasury grant had been combined with the restoration of the cut in employers' national insurance contributions, which was carried through by the previous Government, there would have been enough money to make pensions earnings related for the next five years at least?
§ Mr. DenhamAs I have said, a statement on uprating for next year will be made in due course, but my hon. Friend will recognise the substantial action that the Government have already taken to benefit all today's pensioners, through, for example, winter fuel payments, as well as taking and promising action to give greatest help to the poorest pensioners: those on income support and those who are entitled to income support but do not receive it.
§ Mr. Michael Colvin (Romsey)Is the Minister of State aware that one group of British pensioners receives no uprate in its pensions—those living abroad in certain Commonwealth countries? As part of his pensions review, will he have another look at that injustice and see what can be done to rectify it?
§ Mr. DenhamI am interested to hear the point that is made by the hon. Gentleman. There seems to be some confusion on the Conservative Benches as to whether this Government should be spending less or more on social security, but I make it clear to him, as I have done in correspondence to a number of people, that there are competing pressures and demands on the social security budget and it is unlikely, under the present circumstances, that that particular plea will receive priority.
§ Ms Diane Abbott (Hackney, North and Stoke Newington)Is the Minister aware that many female pensioners were widowed before they reached pensionable age and were very grateful for the support that they were able to receive from widow's benefit? Does he agree that to replace a relatively simple-to-claim widow's benefit with an overlapping array of means-tested benefit would add to themisery and sadness of people at a very vulnerable time?
§ Mr. DenhamMay I make it clear that the Government have no intention of making any changes to the 938 arrangements for existing recipients of widow's benefit? In considering whether any reforms should be made to the system, I assure the House that they will be based on principle, that they will be fair to men and to women and that they will fit the modern world.
§ Mr. Archy Kirkwood (Roxburgh and Berwickshire)Does the Minister accept that there are some worries about the gap between the haves and the have-nots, particularly as evidenced by the recent study on households below average incomes? If he is looking at ways of getting extra help to low-income pensioner households and he is setting his face against linking real income with earnings, will he look at the possibility of getting extra help to the age cohorts at the elder end of the life span, so that we can get money to people who need it most, without the necessity of going through the bureaucracy of a means test?
§ Mr. DenhamThe statistics to which the hon. Gentleman refers are an indictment of the record of the previous Government. They back this Government's case that reforming the welfare system so that it gives greater support and greater opportunity to those who wish to enter work is the right way to proceed. He is right to say that we have said that we want to make a priority of assistance for the poorest pensioners, including those who do not receive their entitlement to income support, many of whom are women living alone and in the older group of pensioners. In addition to the substantial increase in the guaranteed minimum income for pensioners, which we will bring in from April, we will make additional efforts to ensure that those who are entitled to that support receive it.