§ Mr. Heathcoat-AmoryTo ask the Chancellor of the Exchequer (1) if he will estimate the impact on the index by which the state retirement pension is uprated of a reduction in VAT on domestic fuel to 5 per cent.; [5999]
(2) if he will estimate what the effects on the retirement pension would have been at the last uprating if VAT on domestic fuel and power had been reduced to 5 per cent. in September 1996. [6000]
§ Dawn Primarolo[holding answer 30 June 1997]: The state retirement pension is uprated in April of each year by the annual Retail Prices Index (RPI) inflation rate for the preceding September. The effect of reducing VAT on domestic fuel from 8 per cent. to 5 per cent. would be to reduce RPI inflation.