HC Deb 15 May 2000 vol 350 cc18-20
12. Mr. John Wilkinson (Ruislip-Northwood)

What as a percentage of average earnings was the single person's old-age pension in May (a) 2000, (b) 1999, (c) 1998, (d) 1997 and (e) 1996. [120949]

The Minister of State, Department of Social Security (Mr. Jeff Rooker)

In April 1999, the basic state retirement pension was 16.6 per cent. of average earnings. In April 1998, it was 16.8 per cent., in April 1997 it was 17 per cent. and in April 1996 it was 17.4 per cent. The percentage for April 2000 is not available at present, but as the average single person's total pensions income is £132, the percentages that I have given can be doubled because no one is expected to live on the basic state pension alone.

Mr. Wilkinson

Do not the figures demonstrate that the Labour party's election manifesto was, in essence, fraudulent? It said: We believe that all pensioners should share fairly in the increasing prosperity of the nation. Is that not particularly so given that the manifesto said something else? It stated: The basic state pension will be retained as the foundation of pension provision. The foundation is clearly crumbling. The living standards of ordinary state pensioners are declining in comparison with those of people in work, particularly now that they do not receive the married couple's tax allowance, dividend tax relief or tax relief on medical insurance premiums. In other words, they are getting a bad deal, as the 600 Labour councillors who lost their seats last week stated in arguing that that was why they lost.

Mr. Rooker

That is another example of refusal to see the totality of pensioner incomes. I ask the hon. Gentleman and his Front-Bench colleagues where they think the millions of pounds for the winter fuel allowance came from. The money did not come from the national insurance fund; it came from the wider tax payout and is a tax-free benefit for the pensioner population which has arisen from the better economic performance of the country. Where do they think the money for the free television licence for the over-75s came from? It is tax free, and it came not from the national insurance fund, but from the wider pot created by the British taxpayer.