HC Deb 02 June 1997 vol 295 c107W
13. Mr. Corbett

To ask the Secretary of State for Social Security what proposals she has to ensure that retirement pensioners share in rising national prosperity. [889]

Mr. Denham

Our review of pensions will consider the central areas of insecurity for elderly people, including all aspects of the basic pension and its value. In undertaking this review we will ensure that the views of pensioners are heard.

We want to get help to Britain's poorest pensioners and we are commissioning research into the reasons why a million pensioners fail to claim the Income Support to which they are entitled.

Mrs. Osborne

To ask the Secretary of State for Social Security, what plans she has for the basic state pension. [887]

Mr. Denham

We will retain the basic State pension as the foundation of security in retirement provision; it has a vital part to play in providing a decent standard of living in retirement. We will increase it at least in line with prices.

My right hon. Friend the Secretary of State will shortly be announcing details of a review of the central areas of insecurity for elderly people. All aspects of the basic pension will be included in our review.

Mr. Sanders

To ask the Secretary of State for Social Security if he will assess the cost to public funds of restoring the link between pensions and earnings for all pensioners aged 18 years and over on 31 December 1945. [61]

Mr. Denham

The estimated net cost of restoring the link between the higher of the rise in the Retail Prices Index or Average Earnings for uprating the basic Retirement Pension and linked benefits, for those aged 18 years and over on 31 December 1945 is £5.7 billion in 1997–98.

Notes:

1. Costs rounded to £0.1 billion. 2. Estimate assumes that the earnings link is restored from 1980. 3. Estimate of gross costs was provided by the Government Actuary's Department. Net costs, allowing for savings on income-related benefit expenditure, have been modelled using the 1994–95 Family Resources Survey and the May 1995 Income Support Quarterly Statistical Enquiry. 4. Estimate is based on 1997–98 prices, benefits and earnings levels and calibrated to the income-related benefit forecasts underlying the 1996 Departmental Report.