Benefits Uprating (2013-14)

Philip Hollobone Excerpts

Thursday 6th December 2012 Commons Chamber

[Steve Webb]

The hon. Lady’s constituents will want to look closely at how she votes. We hear the sound and fury, but then there is abstention. The Labour party has no alternative. There is a shortfall, and the Government have found a measured and reasonable way to fill it. I have heard nothing from Labour Members about an alternative strategy. Until we hear that, we will not take them seriously.

[Mr Philip Hollobone (Kettering) (Con)]

Will the Minister confirm that next year’s 2.5% increase in the state pension exceeds both the growth in average earnings and the growth in prices? That stands in stark contrast to the miserly and insulting 75p annual increase given by the previous Labour Government to pensioners in 2000.

[Steve Webb]

My hon. Friend is right. Some have suggested that £2.70 is not that great a figure, but when we compare it with the figure he quotes, we can see that it is an improvement. It is higher than inflation and higher than average earnings. As I have said, it takes the pension’s real value relative to what people in work get to its highest level for 20 years. The coalition can be proud of that.