§ 13. Mr. Bob Blizzard (Waveney)What plans he has to increase pensioner incomes. [125838]
§ The Paymaster General (Dawn Primarolo)As announced in the Budget, next April, we will again increase the minimum income guarantee in line with earnings, and we will double its lower capital limit. We are also developing a new pensioner credit to reward those pensioners who have made some provision for themselves.
§ Mr. BlizzardAlthough the Government are spending more on pensioners through the minimum income guarantee and the winter payments than if the earnings link had been restored, and although it has to be right to help the poorest pensioners first, is my hon. Friend aware that many, many pensioners are still unhappy with the situation? Is not the problem the 1.1 per cent. index inflation figure from last September, which has failed to maintain the value of the basic pension? In making plans for next year, will she ensure that a realistic inflation index is used? Will she make up for the shortfall in this year's figure? If she can add something more, it will be even clearer that the Government are committed to 453 increasing pensioner incomes, unlike the Conservative party, whose policy of giving with one hand and taking away with the other would give pensioners only 42p.
§ Dawn PrimaroloOn current inflation forecasts, we expect the basic state pension rise in April 2001 to be more than £2 for single pensioners and more than £3 for couples. Over the Parliament, the Government are 454 spending more than £2 billion more in real terms on pensioners than if we had restored the earnings link in the state pension. The combination of measures—the winter allowance, the change to the capital limits for the minimum income guarantee, the level of the income guarantee and the fact that it is pegged to earnings—in addition to the development of pensioner tax credits is the way forward to ensure that those who are poorest get the help that they urgently need.