HC Deb 23 July 1997 vol 298 cc592-3W
Mr. Flynn

To ask the Chancellor of the Exchequer, pursuant to his answer to the right hon. Member for Wells (Mr. Heathcoat-Amory) of 16 July,Official Report, column 169, concerning the effect on pensioners of the reduction in VAT on domestic fuel, on what assumption in respect of the uprating of the basic pension the answer was based; and for what reason that assumption was used. [10149]

Dawn Primarolo

No assumption was used in respect of the uprating of the basic pension. The uprating for 1998–99 benefit levels will depend upon the retail prices index increase in September 1997. This reflects the prices paid for goods and services and will take account of the reduction in VAT on fuel and power. So the real value of the pension is not affected by the change.