§ Mr. McGradyTo ask the Secretary of State for Social Security if he will increase the level of retirement pension to 33 per cent. of national average earnings for a single person and 50 per cent. of average earnings for married couples; and if he will make a statement.
§ Miss WiddecombeWe have no plans to do so. If the basic state pension had been increased this April in the way suggested by the hon. Member, the extra cost to the national insurance fund would be £25 billion this financial year which would imply an increase of £33 per week in the total contribution for a person on average male earnings and the employer.
§ Mr. WinnickTo ask the Secretary of State for Social Security if he will make a statement on the Government's policy towards increases in the state retirement pension.
§ Miss WiddecombeThe Government are committed to ensuring that state pensions are increased in line with prices thus ensuring a secure foundation in retirement. Further, we have created an economic environment in which pensioners' overall net incomes have increased by 34 per cent. in real terms between 1979 and 1988.