§ Mr. BurstowTo ask the Chancellor of the Exchequer if he will set out which measures relating to pensions in the Budget will(a) increase and (b) decrease the incomes of pensioners. [35882]
§ Dawn Primarolo[holding answer 23 March 1998]: The Government's commitment to today's and tomorrow's pensioners should be in no doubt. Ensuring an adequate income in retirement is key to the Government's Strategy. We have already taken action to help all pensioners—especially the poorest.
One of the Chancellor's first actions was to reduce VAT on domestic fuel. In the Pre-Budget report the Chancellor announced help for winter fuel bills for pensioners for this winter and next. A payment of £50 is being made to pensioner households receiving income support and £20 to other pensioners, in addition to any Cold Weather payments they may receive. And we are spending £15 million looking at ways of encouraging the poorest pensioners to take up their entitlement to income support.
38W
Control total by department in real terms (1996–97 prices) £ million Outturn Previous plans1 Estimate Plans Changes from previous plans 1996–97 1997–982 1998–992 1997–982 1998–992 1997–982 1998–992 Defence 22,345 21,250 21,040 21,260 21,040 10 0 —sale of married quarters -962 -680 0 -680 0 0 0 Foreign Office 1,053 1,040 1,000 1,060 980 20 -20 International Development 2,344 2,130 2,200 2,200 2,190 70 -10 Agriculture, Fishers and Food 4,229 3,660 3,230 3,520 3,180 -140 -40 Trade and Industry progs 3,064 2,970 2,860 3,060 2,800 90 -60 Trade and Industry—Nat Inds -394 -20 -170 -140 -130 -120 40 ECGD 15 10 0 40 50 30 50 DETR 12,975 12,380 11,480 12,270 11,500 -110 20 DETR—Local government3 31,321 30,550 30,190 30,550 31,000 0 820 of which education SSA4. 17,764 17,880 17,550 17,880 18,340 0 790 Home Office 6,486 6,700 6,460 6,700 6,520 0 60 Legal Departments 2,674 2,650 2,550 2,660 2,540 20 -10 Education and Employment5 14,495 13,530 12,690 14,240 12,370 710 -320 Culture, Media and Sport 959 860 870 890 860 20 -10 Health 33,816 34,000 33,750 34,410 35,170 410 1,420 of which NHS 33,043 33,450 33,210 33,780 34,550 330 1,340 Social Security6 76,905 77,690 78,580 77,530 79,130 -170 540 Scotland 14,421 13,960 13,630 14,130 13,800 170 170 Wales 6,817 6,720 6,500 6,770 6,590 60 90 Northern Ireland 8,026 8,010 7,810 8,070 7,950 60 140 Chancellor's Departments 3,190 3,080 2,970 3,170 2,930 80 -30 Cabinet Office 1,157 1,010 1,280 950 1,240 -70 -40 European Communities 1,717 2,190 2,260 1,740 2,310 -450 50 The Chancellor also ensured, in his recent Budget, that pensioners on modest incomes would be protected as the forthcoming changes to the Married Couple's Allowance take effect.
Finally the Social Security Green Paper reaffirmed the Government's commitment to the Basic State Retirement pension as the foundation of pension provision, and to increase it at least in line with inflation. A green paper on pensions later this year will set out how we intend to encourage increased saving for retirement.