§ Mr. PondTo ask the Secretary of State for Work and Pensions how he plans to assist pensioners with income just above the poverty line. [19180]
§ Mr. McCartneyWe have already taken a number of steps to tackle pensioner poverty.
We introduced the minimum income guarantee (MIG) to provide more money for pensioners as quickly as possible. For example a single pensioner aged 60 to 74 now receives £92.15 a week, an increase of £18 a week since 1997 over and above inflation. From April 2002 single pensioners will see their MIG rise by £6 to £98.15 a week.
From 2003 pension credit will ensure people aged 60 and over need not live on less than £100 a week (£154 for couples) and for the first time, saving will be rewarded instead of being penalised. Pension credit will provide a savings credit for those aged 65 and over who have saved for their retirement and have incomes up to £135 a week (£200 for couples), ensuring pensioners with even modest second pensions and savings will get more as a result of their thrift. In addition, we will abolish the rule which excludes pensioners with £12,000 or more in savings from any help and introduce a fairer system for taking into account income for savings.