Oral Answers to Questions

Gregg McClymont Excerpts

Monday 8th December 2014 Commons Chamber

[Steve Webb]

I agree with my hon. Friend in the sense that if one were designing a system from scratch, one would not necessarily design the one that we have arrived at over the course of 50 years. He will be aware, however, that paying for this indexation would cost some half a billion pounds a year, and I do not believe that any party in this House has committed to such an increase in public spending.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

The state pension and associated benefits are very important to UK pensioners. Will the Minister therefore explain why, following last week’s uprating statement, 1.6 million pensioners will see their state pension income rise by just 87p?

[Steve Webb]

I am surprised that the hon. Gentleman did not raise this point last Thursday when I made an oral statement on this issue; perhaps he heard about it on “Money Box” on Saturday. As he knows, not all pensioners receive the full rate of the state pension. Many people—many women, particularly older women—receive a reduced rate, and, as has always been the case, the increase is proportionate to the rate of pension they receive. They get the same percentage increase; it is lower if they get a lower pension.