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Ms Abbott: I support new clause 36. I pay tribute to my hon. Friend the Member for Islington, North (Mr. Corbyn). For many more years than he cares to remember, he has been an advocate for the elderly and taken up this issue, in season and out of season, on the Floor of the House.
As many Members have said, if there is one group of people that feels let down by the Government, it is pensioners because, for 20 long years, we promised them the restoration of the link with earnings. Many of us are speaking to the two new clauses, but I am surprised that many more are not doing so because each and every Labour Member must hear what I hear from pensioners in my constituency about their disappointment in respect of the failure to restore the link. I suspect, perhaps unfairly, that those Labour Members who troop through the Lobby against the new clause will not publicise the fact in their constituencies.
If I were not aware of the real feeling among pensioners about the issue, members of my local Hackney pensioners forum would have ensured that I was. I pay tribute to Hackney pensioners, who are some of the most vigorous and forthright in the land, although some Members might contest that claim.
Pensioners are not easily fooled. They cannot be deluded with spin, announcements and re-announcements. They know that they were promised one thing for many years while we were in opposition and that, now we are in government, suddenly those promises are out of the window. They have observed that. All the spin in the world and all the articles drafted by Alastair Campbell will not distract pensioners' attention from that.
Ministers have said, and will say again tonight, that many pensioners are better off. That is true. Those with occupational pensions and so on are better off, but, like my hon. Friend the Member for Greenock and Inverclyde (Dr. Godman), most of the pensioners whom I represent did not have jobs which made it possible for them to have a big occupational pension and other benefits. The pensioners whom I see are among the poorest.
In 2000, poor pensioners are seeing their income shrink alongside the erosion of social service provision, which pensioners in particular rely on. It is bad enough that the value of the pension is being eroded, but if, as is certainly happening in my part of London, pensioners are seeing cuts in the home help service, charges for that service, cuts in day-care services and cuts in adult education, that makes the decline in the state pension ever more acute. The safety net of social security provision, which they have come to rely on, is being eroded by overall cuts in public expenditure, not to mention--I hope to address the House on the matter on another occasion--the chaos in housing benefit in many local authorities throughout the country, which is hurting the elderly in particular.
Members have spelled out the case against means- testing. It is a disincentive to save. It is six times more expensive to administer means-tested benefits, as the Minister has admitted, than to pay a universal pension.
The thing that weighs with me most about means-tested benefits and pensioners is that more than any other single group in the land--more than the disabled or lone mothers--it is pensioners who feel the stigma of such benefits. If there is one group that should be excluded from having to claim means-tested benefits, it is pensioners.
As I know from personal experience in my family, many pensioners, through sheer pride alone, will not claim means-tested benefits. Ministers talk about the minimum income guarantee and urge reliance by pensioners on means-tested benefits. They know that, however effective the take-up campaign, a considerable number of pensioners will not claim because of the stigma and the association.
Kali Mountford (Colne Valley):
Can my hon. Friend explain why people do not feel the same stigma when applying for housing benefit and council tax benefit?
Ms Abbott:
My hon. Friend has not been here for the entire debate, but let me explain. When she has been a Member of Parliament for a considerable time--[Interruption.] When she has done that, she will know that pensioners believe that they are entitled to a pension as of right. What pensioners want is a basic income as of right. They do not want to ask for what they perceive as handouts in the form of means-tested benefits. If she does not believe me, I suggest that she discusses that with
Kali Mountford:
Will my hon. Friend give way on that point?
Ms Abbott:
No, I have to make some progress. I am sorry that my hon. Friend is not aware of the strength of feeling among pensioners. If she has any doubt about pensioners' fear of the stigma attached to claiming means-tested benefits, she should come to the next meeting of the Hackney pensioners forum. That will remove her confusion.
As has been said, pensioners appreciate the free television licences being granted to those over 75, and the fuel provision. However, they want the long-promised rise in the basic pension to be implemented and the link restored.
Members of the Labour party across the country also want that link restored. By any test of opinion--a postal ballot, say, or an electoral college--that is what most party members want. I served for a few years on the party's national executive committee. I well remember the 1996 party conference, at which a composite resolution, heavily supported by the constituencies and trade unions, called for the restoration of the link.
Behind the scenes, there was a momentous battle to prevent that resolution from going to a vote. The hapless delegate who was to move the resolution was told by the then shadow Chancellor that, if he went ahead and moved it, he would be responsible for losing Labour the next general election. The same shadow Chancellor telephoned that delegate's constituency party chairman with the same message.
Delegates buckled under the incredible pressure exerted by officials and the shadow Cabinet. The composite was moved by Baroness Castle, in a brilliant speech--
Mr. Deputy Speaker:
Order. I am well aware of the background activities at that Labour party conference. However, the hon. Lady has made her point, and should keep to the amendment.
Ms Abbott:
I am grateful to you, Mr. Deputy Speaker, for acting as a witness to internal Labour party matters, but I will not dwell on those sadnesses.
However, my point is that Labour party members--from the left, right and centre of the party--feel just as disappointed as pensioners. Even at this late stage, Ministers should consider their position on the matter.
The Government are willing to give out money for fuel relief and free television licences, so why will they not do anything about the basic pension? There may be several reasons. Labour Members and pensioners forums around the country may not have put their case compellingly enough. Perhaps the Government want to keep overall public expenditure within the limits set by the Maastricht treaty--but I will not delay the House with such speculation.
For 10 long years as a Member of Parliament, I have attended meetings of the Hackney pensioners forum. I would tell them of the party's commitment on the matter, and the pensioners would talk about what would happen when the Labour party got into power. The Labour party is in power now, and 20 years of commitment to restoring the link has gone out of the window. Many pensioners will be left in poverty, despite the take-up campaign for the minimum income guarantee. The sadness is that, after waiting so long for a Labour Government, pensioners are being failed by that Government. What hope have they now?
I urge Ministers to re-examine this matter, which is at the heart of the concerns felt by many Labour party members across the country.
Mr. John Austin (Erith and Thamesmead):
Some of the relevant figures may explain why there is so much anger among pensioners. The basic pension is £67.50 a week, or £107.90 for a couple. If the previous Conservative Government had not broken the link, those amounts would have been £97.45 and £155.80--£30 and almost £50 a week higher, respectively.
How can people live on the basic pension? Many do not live on it, but merely survive. Sadly, some do not even do that, as the figures for hypothermia show.
I accept everything said by my hon. Friends the Members for Hayes and Harlington (Mr. McDonnell) and for Islington, North (Mr. Corbyn) about all the material benefits that the Government have given to pensioners. There is no doubt that pensioners are immeasurably better off than they would have been under Conservative spending plans and policies. We must remind ourselves that when the Leader of the Opposition talks about reducing taxation, he does so in the context of reducing spending on welfare. We know from the record of Conservative Governments in the past that tax cuts come from breaking the link between pensions and earnings.
We must bear in mind the feelings of pensioners, despite the benefits that have come from the Labour Government. As my hon. Friend the Member for Bolton, South-East (Dr. Iddon) said to me, the increase for a single pensioner on the basic pension this year was less than the price of half a pint of beer. As my hon. Friend the Member for Islington, North pointed out so clearly, the rate of inflation for pensioners is much higher than for other members of the community, as they cannot make savings through cheap shopping, bulk buying, and so on.
The Government may argue that the cost of restoring pensions to what would have obtained had the link not been broken is too high and cannot be afforded. However, raising the pension level to that of the minimum income guarantee would cost about half as much, and I urge the Government to take that option.
I have talked to Ministers, including my right hon. Friend the Prime Minister, about this matter. I have been told about the cost, and that money put on the basic pension would not reach those most in need. However, the fuel allowance represents an inconsistency on the Government's part. It is universal and goes to everyone but, unlike pensions, it is not taxable. That benefit therefore goes to everyone, irrespective of income, and the Government cannot claw it back from the better off.
7.30 pm
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