Pensioner Poverty

Mr. Shailesh Vara (North-West Cambridgeshire) (Con)
5. What his most recent estimate is of the proportion of pensioners living in poverty.

The Minister for Pensions Reform (Mr. Mike O'Brien): Since 1997 pensioner poverty has been reduced by a third to 17 per cent. Through targeted support, such as pension credit and £11 billion of extra funding, we have lifted more than 1 million pensioners out of relative poverty.

Mr. Vara
I am grateful to the Minister for those comments.

According to the Prudential, rising food prices affect pensioners more than any other age group. Does the Minister share my concern that as food prices are increasing at their fastest rate in 14 years, that is having a negative impact on pensioner poverty?

Mr. O'Brien
What we have ensured is that we continue to deal with the issues surrounding pensioner poverty, which is why we introduced pension credit. We have sought to lift the poorest pensioners out of poverty, and they are the people who would be most affected by increases, say, in food prices. At the same time, we have sought to provide a solid foundation of support for pensioners who are beyond pension credit levels. Those are issues, which is why the Government continue to upgrade the level of pension credit.

Mr. Terry Rooney (Bradford, North) (Lab)
My hon. and learned Friend will be aware that fuel prices are an issue for many pensioners, but is he aware of the British Gas scheme for a social tariff for those on lower incomes? One of the problems of expanding the scheme is access to data, so will he undertake to have conversations with British Gas about data sharing and how it might be taken forward?

Mr. O'Brien
I think the straight answer to my hon. Friend is yes.

Mr. Nigel Waterson (Eastbourne) (Con)
But can the Minister confirm that 2 million pensioners are living in poverty and that the very poorest pensioners are seeing their real incomes fall by 4 per cent. a year—costing on average more than £250? Will he join me and my hon. Friend the Member for Epsom and Ewell (Chris Grayling) tomorrow night at the vigil outside Downing street to be held by some of the 125,000 pension victims? If he comes to talk to them, will he explain why he is still refusing them the help that they need?

Mr. O'Brien
First of all, in terms of numbers we estimate that 1.1 million to 1.7 million pensioners do not take up pension credit. I think before the hon. Gentleman makes comments such as those he has just made, he should recall that when the Conservatives were in office they left 2.7 million pensioners living in poverty, many living on as little as £69 a week; many women were restricted from building up state pension entitlement in their own right and carers were similarly mistreated. In talking about the financial assistance scheme—the help for the 125,000 pensioners concerned because of the breakdown of their pension scheme—the Tories should be a little careful; they cannot afford to claim that they looked after pensions during their term. They created the circumstances in which many of those schemes got into trouble. In 1986, pension fund surpluses were capped by the then Chancellor. They allowed pension holidays—

Mr. Speaker
Order. David Winnick.

Mr. David Winnick (Walsall, North) (Lab)
Should not the Government be warmly congratulated on the measures taken in the past 10 years, which the previous Administration refused to take and from which many of my constituents and others, especially poorer pensioners, have benefited? When the Government are acting in the right direction, as they do on most occasions, no one is a greater admirer than I.

Mr. O'Brien
As always, I am grateful to my hon. Friend for his support. This Government are tackling the problems of pensioner poverty left to us by the previous Government.