Social Security

I hope that the hon. Gentleman will welcome the fact that the basic state pension has been uprated well above inflation since 1997—by 8 per cent. in real terms. That is in sharp contrast to what his party did in government. There was no real-terms increase in the basic state pension between 1980 and 1987, except for a single year—the year in which VAT was added to fuel—in which it was increased by 50p a week on top of inflation. That year is vividly recalled by pensioners and, indeed, by us all. I hope that the hon. Gentleman will welcome the substantial real-terms increase in the basic state pension that the Government have brought about. In April, radical tax simplification on A-day will enable people to draw their occupational pension while continuing to work for the same employer. April will also see the first people benefit from the new state pension deferral option of a lump sum that could be worth £5,000, improving rewards for those who choose to delay taking their state pension even if they do so for only a short time. In tackling the pernicious poverty of the past, we have opened the door to lifelong opportunity and independence. We are laying foundations for a long-term pensions settlement and have delivered tailored, flexible support to help groups that were previously excluded from work to break out from dependency and realise their ambitions for the first time. We have given families the flexibility and resources to balance the demands of work with those of child care and to ensure that children get the best possible start in life. The standard rates of statutory maternity pay and maternity allowance have increased by just over 80 per cent. Those improvements complement others such as the increase of maternity leave to 26 weeks, the introduction of an additional period of 26 weeks’ maternity leave after that and the introduction of rights to two weeks’ paternity leave and pay as well as 26 weeks’ adoption leave. It is good to see those opportunities being taken up by Opposition Members. We are giving parents greater choice in how they balance their work and caring responsibilities in the first year of their child’s life. The Work and Families Bill will introduce a new entitlement to statutory paternity pay to enable a father to take time off work and receive statutory pay instead of his partner if she returns to work early.