Pensioner Poverty (Hansard, 15 April 2002)

§ Mr. McCartney

Poverty and social exclusion are complex concepts, affecting many aspects of people's lives; including their living standards, health, housing and quality of environment. The third "Opportunity for all" report sets out the Governments strategy for tackling poverty and social exclusion and presents the latest information on the indicators used to monitor progress against this strategy.

The Government's first priority was to address the immediate problem of pensioner poverty today. That is why we introduced the Minimum Income Guarantee (MIG) in April 1999 to provide money for the poorest pensioners as quickly as possible. 2,200 pensioners in the Cotswold constituency are receiving the MIG and over 2 million pensioners nationally benefit from the MIG.

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This Government has also introduced measures to ensure that all pensioners share in rising prosperity. From this April the basic state pension has risen by £3 a week for single pensioners and £4.80 for couples above inflation increases last year.

This is in addition to the introduction of winter fuel payments, currently £200, made to over 11 million pensioners and free TV licences for the over 75s which benefit some 3 million pensioners.

From 2003 the pension credit will reward those who have worked hard and saved hard.

We are also committed to tackling the longer term issues by helping people build up good second pensions. To this end we have introduced stakeholder pensions and improved the state earnings related pension scheme through the introduction of the state second pension. This will boost the additional state pension entitlement of £14 million low and moderate earners. Additionally, for the first time 2 million carers and 2 million people whose working lives are disrupted by long-term illness or disability will also be able to build up entitlement to the state second pension.