Monday 9th June 2025

(3 days, 16 hours ago)

Commons Chamber
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Torsten Bell Portrait Torsten Bell
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As always, I thank my hon. Friend for his well-put thoughts. He is absolutely right that pensioner poverty fell significantly, halving under the last Labour Government, before unfortunately rising by 200,000 people under the Conservatives, but we must not be complacent about the headline of falling pensioner poverty, because there are wider problems. [Interruption.] I am glad that the right hon. Member for Beverley and Holderness (Graham Stuart) welcomes it. The point I am coming to is that the stagnating incomes of working-age households under the last Labour Government moved across to stagnant incomes for pensioners and no falls in absolute poverty for pensioners under the Conservatives. There are subsets of pensioners, such as single pensioners, private renters and others, where we see lasting problems. It is important to see this in the round, but my hon. Friend the Member for East Renfrewshire (Blair McDougall) is absolutely right to say that we must move further on child poverty. He will have seen last week’s announcement on free school meals in England, with consequentials for the devolved Administrations, and we will come forward further with a child poverty strategy soon.

Will Forster Portrait Mr Will Forster (Woking) (LD)
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I welcome this Government’s U-turn. Countless pensioners in Woking suffered last winter, so I am pleased that that will not continue. The Minister stated that £36,000 is the threshold that he and the Government have chosen because it is the average earnings. Will the Government commit to increasing that threshold going forward when average earnings rise?

Torsten Bell Portrait Torsten Bell
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That is an important question. There is always a judgment in choosing a threshold for any means-tested benefit, and I want to be completely straight with the House about that. We have chosen a threshold that is well above the income level of pensioners in poverty, and it will ensure that more than three-quarters of pensioners receive the benefit of the winter fuel payment in England and Wales. The hon. Gentleman is right that it is currently in line with average earnings. It is important to have clarity for pensioners—a point that the Liberal Democrat spokesperson, the hon. Member for Torbay (Steve Darling), just made. We will leave the £35,000 at the current level, as all thresholds in the income tax system are frozen for the coming year, so that pensioners know that that is the threshold and there are no surprises. Decisions about future uprating will be for future Budgets.