§ Siobhain McDonaghTo ask the Secretary of State for Work and Pensions what impact Government policy is having on the income of pensioners in Mitcham and Morden. [89834]
§ Mr. McCartneyThis Government have done much to assist pensioners. The Government want all pensioners to have a decent and secure income in retirement and to share fairly in the rising prosperity of the country. The first priority has been to help the poorest pensioners.
From April 2002, the Government are spending an extra £6 billion a year in real terms on pensioners as a result of policies introduced since 1997. This includes £2½ billion more on the poorest third of pensioners. Three times more than an earnings link since 1998 would have given them.
The basic state pension is the foundation of income in retirement. The Government increased rates in April 2002 by £3 a week for single pensioners, to £75.50, and for couples by £4.80 a week, to £120.70. From April 2003, there will be further above inflation increases of £1.95 a week, to £77.45, and for couples by £3.10 a week to £123.80.
As at March 2002, around 13,100 people in Mitcham and Morden were in receipt of state pension.
605WFrom April 2003, no pensioner will have to get by on less than £102.10 (£155.80 for married couples). Mitcham and Morden has approximately 2,500 people claiming the minimum income guarantee receiving on average approximately £57 per week compared to £32 per week in 1997.
Around half of all pensioner households will benefit from the new groundbreaking pension credit being introduced in October.
In addition, other initiatives have significantly helped pensioners. These include winter fuel payments (WFPs), which will continue to be paid to qualifying households at £200 a year throughout this Parliament. In winter 2001–02, there were approximately 14,300 recipients of a winter fuel payment in Mitcham and Morden.
Free TV licences are available for the over 75s, worth £104 a year. The WFPs and TV licences are non income-related and are tax free.