§ 10. Mr. Ben Chapman (Wirral, South)What measures he is taking to help pensioners on low incomes. [136115]
§ The Secretary of State for Social Security (Mr. Alistair Darling)We plan significantly to increase the minimum income guarantee to £92.15 next year, rising to £100 the year after. In addition, the new pension credit will benefit 5.5 million pensioners on low and moderate earnings.
§ Mr. ChapmanIs my right hon. Friend aware that 3,000 pensioners in my constituency will enjoy a substantial boost to their incomes when the minimum income guarantee is increased in April next year? Does he agree that it is right and proper that we focus our attention first on those pensioners who need help most? Does he further agree that if we are not to return to the pensioner poverty that we inherited from the previous Government, we need to review the minimum income guarantee in future years?
§ Mr. DarlingMy hon. Friend is right. Two structural reforms were necessary to the present pension system. One was to make sure that we got rid of pensioner poverty once and for all. The only way the pensioner poverty that grew up over the past 20 years can be eradicated—is to give far more than a prices—or indeed an earnings—link to the poorest pensioners, and we are doing that by some £20 a week
In addition, it was necessary to remove the fundamental flaw in the social security system that we inherited. Under the present system, if people save they are punished for it. Under the pension credit, some 5.5 million households will gain because of their thrift and foresight, and I think that most people will bear that in mind when they go to the polls, whenever the election is held.
§ Mr. David Crausby (Bolton, North-East)Is my right hon. Friend aware that over the three years since 1997 the poorest pensioners have received an additional £24.35 a week—or will do eventually—compared with a starting point of £67.80, a sum accumulated over the entire history of pensions provision, including the 18 miserable years of the previous Government?
§ Mr. DarlingAs I said earlier, during the course of this Parliament we will have done more for Britain's pensioners in five years than the Conservatives did in the 18 years they were in power. That is why I suspect that, when it comes to the election, the British people will look at what the Tories are planning. They want to take away the winter fuel payment of £200, the free television licences and the Christmas bonus, which are benefit-free and tax-free, and then try and con people into believing that they will be better off if those payments are given back to them. The fact is that some 2.5 million people will lose out from those measures; and when they look at the longer-term plans they will find it odd that the Conservative party is the only organisation in the country that wants to keep a rotten system under which people 644 who saved were punished for it. We want to ensure that 5.5 million people who have saved for their retirement are rewarded for their thrift.
§ Mr. Christopher Fraser (Mid-Dorset and North Poole)Does the Secretary of State agree with Baroness Castle that Conservative pension plans which consolidate Labour's pension gimmicks and give the money back as a decent rise on the basic state pension are "an absolute vote winner"?
§ Mr. DarlingAs I have told the hon. Member for Havant (Mr. Willetts), when Conservatives pray in aid Lady Castle they are desperate indeed. The British people know that the Government have done more for pensioners in the past four years than the Conservative party did in the 18 years before that. I do not think that Lady Castle or anyone else is likely to support a party that is pledged to taking £200 off every pensioner household as well as taking away the free television licence for the over-75s and the Christmas bonus. People are in no doubt that if they vote for the Conservative party, in the long term they will lose out and be worse off.