Pensions (Hansard, 19 April 1999)

§ 29. Mr. David Amess (Southend, West)
What recent representations he has received on the level of retirement pensions. [79757]

§ The Minister of State, Department of Social Security (Mr. Stephen Timms)
About 170 of the 550 responses to the pensions Green Paper consultation exercise comment on the level of the state retirement pension.

§ Mr. Amess
Is the Minister aware that I am inundated by representations from senior citizens in my constituency who tell me that they are now living in poverty as a result 569 of this rotten Government's policies? Will the Minister address the point that he failed to take up earlier on the level of savings? Will he also tell the House how the Government will fund the second state pension?

§ Mr. Timms
On the hon. Gentleman's final point, the Green Paper sets out fully how the Government will fund our pension proposals. They are affordable, they are durable and they have been widely welcomed. I hope that when he receives representations from his constituents he draws their attention to the minimum income guarantee, which took effect last week. That has already led to several hundred people having a boost in their incomes.
My right hon. Friend the Secretary of State said at the beginning of Question Time that we are looking again at savings limits governing the receipt of income support for those pensioners with modest savings who are at present just outside the scope of the minimum income guarantee. 570 We are considering the possibility of bringing them within it by changing the limits that we inherited from the previous Government.

§ Mr. Desmond Swayne (New Forest, West)
The combination of the minimum pension guarantee with council tax benefit and housing benefit will ensure that an individual must save £80,000 to be better off than someone who has saved nothing at all. The Minister said earlier that that figure is inaccurate. Can he say what is the accurate figure?

§ Mr. Timms
It is an inaccurate figure, because it does not allow for the income that people will receive anyway in retirement, but we are still waiting for an explanation from Conservative Members about why they want the minimum income guarantee to be uprated only in line with prices. What do they have against people on income support? That is what their constituents will want to know.