Social Security

I do not believe the figures that the hon. Gentleman has come up with. The retail prices index for September, which is the index that we have used to uprate by prices, was minus 1.4 per cent., so zero is still an increase—although it does not feel like it—in terms of buying power. It is also important to remember that the 2.5 per cent. increase in the basic state pension goes to all pensioners. In the circumstances, we decided, because of the complications surrounding public sector pensions and the extra amount of money that uprating would have cost—some £1.2 billion—that it was right to hold additional pensions at a zero increase this year. However, the 2.5 per cent. increase in the basic state pension will mean that, on average, recipients in Great Britain will see an overall increase of 2 per cent. in their state pension, taking into account additional and basic state pension, which is 3.4 per cent. above the prices indicated in the RPI.