Pensioner Poverty

Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 11 May 2009.

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Photo of Andrew MacKay Andrew MacKay Senior Parliamentary & Political Advisor To David Cameron 2:30, 11 May 2009

What steps his Department is taking to alleviate pensioner poverty; and if he will make a statement.

Photo of Rosie Winterton Rosie Winterton Minister of State (Regional Affairs) (Yorkshire and the Humber), Minister of State (Department for Work and Pensions) (Pensions Reform) and Minister (Yorkshire and the Humber)

Compared with 1997, we are now spending £13 billion more per year on pensioners, particularly those on the lowest incomes. As a result, we have lifted 900,000 pensioners out of relative poverty.

Photo of Andrew MacKay Andrew MacKay Senior Parliamentary & Political Advisor To David Cameron

When I was manning a stall in Bracknell town centre recently and asking people to sign a petition on pensioner poverty, a large number of pensioners asked me why the Chancellor had not zero-rated or stopped taxing their unearned income, given that they were on the basic rate of tax. I could not answer that, and I cannot believe that he has not done so. Perhaps the Minister would like to explain why that has not happened.

Photo of Rosie Winterton Rosie Winterton Minister of State (Regional Affairs) (Yorkshire and the Humber), Minister of State (Department for Work and Pensions) (Pensions Reform) and Minister (Yorkshire and the Humber)

I am sure that the right hon. Gentleman will have taken the opportunity, when discussing these matters with pensioners, to point out that we are spending £13 billion extra on pensioners this year, and that, over the term of this Government, we are spending £96 billion more than we would have spent had we followed the policies of his Government when we came to power. I am sure he is also aware that the changes to personal allowances in the recent Budget mean that almost half of pensioners do not pay tax at all.

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