§ 15. Mr. Ben Chapman (Wirral, South)What representations he has received about the amount his Department spends on pensioners. [145973]
§ The Secretary of State for Social Security (Mr. Alistair Darling)The extra £4.5 billion that the Government are spending over and above the amount that the Conservatives planned to spend has been widely welcomed.
§ Mr. ChapmanDoes my right hon. Friend agree that it is unsurprising that few representations have been made to the Department of Social Security about spending on pensioners, because the Government have done more for our pensioners in four years than the previous Government did in 18 years? Does he agree also that we remain committed to allowing pensioners to share in the growing prosperity of the country as it develops?
§ Mr. DarlingMy hon. Friend is right. Most people welcome the increase in the basic pension of £5 for single pensioners and £8 for pensioner couples, which will happen in April. That comes together with the increase in the minimum income guarantee, which means that 2 million of the poorest pensioners in the country will be at least £15 a week better off in real terms. Those increases have been widely welcomed. I am sure, however, that the same people who welcome them will be equally apprehensive about the Opposition's proposals to scrap the winter fuel payment and to reduce the entitlement for 2.5 million pensioners, who will lose out as a result of the proposal.
§ Mr. Graham Brady (Altrincham and Sale, West)How much money each year will the Government claw back from people who reach retirement age and will no longer qualify for the married couples allowance?
§ Mr. DarlingThe hon. Gentleman knows that we made changes to the married couples' allowance because we wanted to focus more help on families with children. We want to ensure that the Government's help goes to people on the basis of need rather than status. That is why we made those changes.
§ Mr. Russell Brown (Dumfries)Having spoken to some pensioners in my constituency over the weekend, may I tell my right hon. Friend how much they applaud the Government's efforts in relieving them of pensioner poverty? Given the time of year, they made particular mention of the winter fuel payment. Can my right hon. Friend outline what he believes the introduction of the pension credit will do for those who fall just above that minimum income guarantee line?
§ Mr. DarlingMy hon. Friend will be aware that the Government intend to introduce the pension credit 17 from 2003. It will guarantee that no pensioner need live on less than £100 a week and will ensure that, for every pound that they save, people qualifying for the pension credit will receive a cash top-up. For example, a pensioner saving £20 a week will get £12 a week on top of that as a reward for saving.
The Government's objective is to ensure that it pays to save. The problem with the social security system that we inherited was that there was a positive disincentive against saving. From 2003, for the first time in the history of the social security system in this country, for every pound pensioners save they will get a credit for their thrift. That reform is long overdue. Not only does it help combat pensioner poverty but it ensures that thrifty pensioners are rewarded and not penalised, as they were for far too long.