§ Mr. Heathcoat-Amory
To ask the Chancellor of the Exchequer what estimate he has made of the effect of his Budget's reduction in VAT on domestic fuel on(a) a single pensioner and (b) a pensioner couple on average income net of upratings of pensions and benefits. 169W
§ Dawn Primarolo
[holding answer 7 July 1997]: The reduction in VAT on fuel and power will mean an average fuel bill saving of 30p per week for single pensioners, and 40p per week for couples.
The state retirement pension is uprated in April of each year by the annual Retail Prices Index (RPI) inflation rate for the preceding September. Uprating by RPI reflects the prices paid for goods and services. So the real value of the pension is not affected.