Social Security

My hon. Friend has raised an interesting point. I think that the RPI is the right basis on which to proceed, but the national pensions debate is under way and he may want to raise that point in the discussion. The order adds nearly £3.5 billion to Government spending. It tackles poverty by helping those most in need and supports our ambitious programme to renew welfare and pensions. Since 1997, we have taken decisive measures to address the pressing problems that we inherited. Through winter fuel payments, free TV licences for over-75s and basic state pension increases, we have helped all pensioners. From April 2006, the basic state pension will be £84.25 for a single person and £134.75 for couples, which is a real-terms increase of 8 per cent. since 1997. By targeting extra resources on the least well-off, in particular through pension credit, we have taken nearly 2 million pensioners out of absolute poverty. The pension credit guarantee will rise in line with earnings so that even the least well-off pensioners can share in Britain’s rising prosperity. From April, no single pensioner need live on less than £114.05 a week, and no couple need live on less than £174.05 a week. In 1997, many pensioners were living on £69 a week, which was a shameful legacy of poverty that we must never allow to return.