§ Lord Tebbitasked Her Majesty's Government:
Whether the reduction in VAT on domestic heating fuels will, by reducing the increase in the RPI, negate any potential gain for those dependent for their income on index linked benefits.
§ The Parliamentary Under-Secretary of State, Department of Social Security (Baroness Hollis of Heigham)We have cut VAT on fuel to the lowest possible level as part of our commitment to reducing poverty. This will have only a minor effect on the retail prices index and people in receipt of index linked benefits will remain better off after uprating.