§ 3. Mr. David Heath (Somerton and Frome)What assessment he has made of the relationship between the indices used to calculate annual pensions upratings and patterns of expenditure by pensioners. [136108]
§ The Minister of State, Department of Social Security (Mr. Jeff Rooker)Each year, when considering the uprating, consideration is given to a wide range of factors, including the retail prices index. We recently announced our intention to increase the basic state pension by more than prices, and indeed by more than earnings.
§ Mr. HeathWill the Minister confirm that in two years the basic pension will be uprated on the basis of the same index as that which gave us the miserable 75p this year? Is it not odd that it contains elements that are not relevant to pensioners, and does not include items that are highly relevant, particularly to the poorer pensioner? Is it not time to stop messing about with indices, and to move instead to an independent review body? That is good enough for judges, generals and even for Members of Parliament. Should it not be good enough for pensioners?
§ Mr. RookerI did not hear a thank you in that, or any reference to the fact that the pension is to increase by 7.4 per cent. next April. I heard a reference to poorer pensioners, many of whom will get a £14 a week increase next April. That is the reality. I am more interested in making sure that we deliver what we promised next April than in discussing the hypothetical issues relating to two years hence.
§ Mr. Denis MacShane (Rotherham)On patterns of expenditure, does my right hon. Friend agree that the old motto, "From each according to his means, to each according to his needs," is still a good one and might apply to pensions? Pensioners with means should accept some responsibility. Is my right hon. Friend aware that in my constituency there is concern about the application of the difference between personal and nursing care for the old in long-term care? Will he continue to keep this sensitive matter under review, as it causes deep concern to pensioners in Rotherham?
§ Mr. RookerI cannot give my hon. Friend a substantive answer, but I understand that the matter will be sorted out in forthcoming legislation, subject to the contents of the Queen's Speech.
§ Mr. Peter Lilley (Hitchin and Harpenden)Does the right hon. Gentleman recall using the lowest possible index to increase state pensions last year and the highest possible index to raise duty on petrol last year? Does he further recall saying that any concessions on fuel tax would mean no more money for pensioners? Can he now explain to us at what point the Chancellor of the Exchequer decided to do a double U-turn?
§ Mr. RookerWe considered many issues in relation to the uprating that we announced. We did not use an index.