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Pensioners and Savers

Volume 589: debated on Tuesday 9 December 2014

This Government are determined to support savers and pensioners—unlike the last Government who gave them miserly increases in state pensions. Since 2010, we have delivered the biggest-ever increase in the individual savings account allowance and for pensioners the triple lock means that they will receive about £560 more in 2015-16 than under the last Government’s policy. We have also given pensioners the freedom to choose how and when to access their own pension.

My hon. Friend is right that the previous Administration caused the great recession, which has meant that savers in Crawley have suffered considerably. Last week’s autumn statement proved that this Government stand up for the aspiration of passing on savings to our children.

My hon. Friend is quite right. He will be as delighted as we are that we are now allowing people to pass on their unused ISAs to their spouse or civil partner free of tax, and their defined contribution pension schemes are also to be free of tax to their successors. This was a great move, allowing people to decide what they do with the money they have saved during their lifetimes.

Most pensioners in my constituency do not have enough savings to put money in an ISA, but can the Minister confirm that owing to recent measures announced by the Government, those who receive the savings element of pension credit will, because of its interaction with pensions, receive only an 87p rise?

The hon. Lady should welcome the fact that this Government introduced the triple lock for pensioners to ensure that, instead of under the last Government when they received only the increase in average earnings, pensioners under this Government will receive an element for inflation, average earnings or 2%, whichever is the higher.