HC Deb 15 April 2002 vol 383 cc356-7
12. Phil Sawford (Kettering)

How many pensioners in the Kettering constituency benefit from the minimum income guarantee. [45022]

The Minister for Pensions (Mr. Ian McCartney)

As at November 2001, 3,100 pensioners in the Kettering constituency benefited from the minimum income guarantee. Those pensioners are at least £15 a week better off in real terms than in 1997. More than 2 million pensioners nationally benefit from the MIG. Additionally, this winter more than 19,600 older people in my hon. Friend's constituency received a winter fuel payment, benefiting each eligible household by £200.

Phil Sawford

I thank my right hon. Friend for that answer and welcome the real help that the poorest pensioners in my constituency receive. However, the minimum income guarantee is a means-tested benefit, and most pensioners would prefer a significant increase in the basic state pension. Will my right hon. Friend find time to speak to the Chancellor about that before the Budget statement on Wednesday?

Mr. McCartney

The Government have substantially increased the basic income of all pensioners. Initially, our greatest priority was to help the 2 million pensioners who did not benefit from minimum increases, whatever the rate, because for various reasons they were excluded from the basic state pension. We make no apology for being the first ever Government to find out who those 2 million people were and to ensure that they benefit from the minimum income guarantee. We have moved on to the second phase with the introduction of the pension credit; the passage of the State Pension Credit Bill resumes tomorrow. I should have hoped that the Liberals and the Conservatives would have a last-minute change of heart and support the Government in this, not oppose giving extra cash to millions of pensioners.

Mr. Tim Boswell (Daventry)

After those exchanges, I am not sure whether I should offer comfort to the Minister or to the hon. Member for Kettering (Phil Sawford). Unless the Kettering constituency is highly untypical—I rather doubt it, because it is next to mine and contains some of my former constituents—it, like mine, has 1,000 pensioners who are entitled to the minimum income guarantee but are not taking it up. Is not that wholly unsatisfactory? Will not the position get worse through the additional complexities of the pension credit scheme? Will the Minister consider whether it will be possible to reach out to pensioners who are entitled to the guarantee credit or the savings credit through a pension service that is to be located far away in another county?

Mr. McCartney

If it was not for this Government, the pensioners in the constituency of my hon. Friend the Member for Kettering (Phil Sawford) and that of the hon. Member for Daventry (Mr. Boswell) would remain abandoned and not receive an extra £15 a week on average. In some instances, the poorest pensioners in the hon. Gentleman's constituency receive an extra £20 a week. When we discuss the State Pension Credit Bill tomorrow, he will have a dilemma, which he may as well face now: will he oppose a measure that will put an extra £2 billion in the pockets of many pensioners, especially women and people who would never benefit under the Tories' previous pension proposals? He should give a straight answer: will he frustrate the opportunity for those people to receive the £2 billion?

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