Social Security

Peter Bottomley Excerpts

Monday 4th March 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

I beg to move,

That the draft Social Security Benefits Up-rating Order 2019, which was laid before this House on 30 January, be approved.

In my view, the provisions in the order are compatible with the European convention on human rights. The order reflects the Government’s continuing commitment to increase the basic and full rate of the new state pension by the triple lock, to increase the pension credit standard minimum guarantee in line with earnings, and to increase carer’s benefits, and benefits intended to meet additional disability needs, in line with prices.

The Government’s commitment to the triple lock means that the basic state pension will continue to be uprated by the highest of rises in earnings, rises in prices or 2.5%. The triple lock has been an invaluable tool in combating pensioner poverty, and keeping it in place gives pensioners the financial security and certainty that they deserve. This year the increase in earnings was the highest of the triple lock figures. As a result, the basic state pension will increase by 2.6% to £129.20 a week for a single person. Consequently, from April this year the basic state pension will be over £1,600 a year higher than it was in April 2010. We estimate that the basic state pension will be around 18.4% of average earnings, which is one of the highest levels relative to earnings for over two decades.

Three years ago, the Government introduced the new state pension, which provides a transparent and sustainable foundation for private saving and retirement planning for people reaching state pension age on or after 6 April 2016. We have also committed to increase the full rate of the state pension by the triple lock. As such, from April 2019 the full rate of the state pension will increase to £168.60 a week—about 24% of average earnings.

[Sir Peter Bottomley (Worthing West) (Con)]

If the Minister will not say this, may I? That increase does not go to half our overseas pensioners, including those in South Africa, Canada and Australia and other places—50 countries around the world. Does he agree that it is about time we considered that?

[Justin Tomlinson]

I thank my hon. Friend, who has campaigned tirelessly on this issue. It has been the case for some 70 years that we do not uprate those pensions, and at this stage there are no plans to make any changes to that.

On the additional state pension, this year the state earnings-related pension scheme and the other state second pensions, as well as protected payments in the new state pension, will rise by 2.4% in line with prices. With pension credit, we are continuing to take steps to protect the poorest pensioners, including through the pension credit standard minimum guarantee—the means-tested threshold below which pensioner incomes should not fall. That will rise by 2.6% in line with average earnings. From April 2019, the single person threshold of this safety-net benefit will rise to £160.25—over £1,800 a year higher than it was in 2010.