§ Mr. FlynnTo ask the Chancellor of the Exchequer if he will hypothecate the proceeds from privatisations, semi-privatisations and outsourcing of services for the purpose of increasing the level of the basic pension. [122105]
§ Mr. Andrew Smith[holding answer 15 May 2000]: No. The Government will be spending an additional £6.5 billion on pensioners over the course of this Parliament, £2.5 billion more than if the basic state pension had been increased in line with earnings. We are helping all pensioners, but targeting help on those who have lost out over the last 20 years. Over half of these additional resources are going to 3 million of Britain's poorest pensioners. As a result of all our measures, including the introduction and uprating of the minimum income guarantee in line with earnings, raising the winter fuel payment to £150 and the introduction of free TV licences for pensioners aged over 75, the poorest pensioners over 75 will be up to £950 better off in cash terms than in 1997.
The Government make their spending decisions based on what is affordable within the prudent control of the public finances. In general, the Government believe that how money is raised should not determine how it is spent, and spending priorities are best determined in the round. The Chancellor's recent Budget continued to build a platform of economic stability from which to deliver high and stable levels of growth and employment, while releasing substantial new resources for its key priorities, including extra support for pensioners.