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30 Jan 2003 : Column 1110—continued
Mrs. Brooke: Will the Minister give way?
Mr. Leslie: I have no time because I have only a minute left, in which I should like to reassure the hon. Lady that we are giving pensioners extra support. We are giving significant discounts: for example, we are making a 25 per cent. reduction for single people. However, I do accept that more needs to be done, and we shall continue to work on that basis. Basic pension increases have been significant, and there is other support for pensioners as well, as the hon. Lady said. There is the minimum income guarantee, the cut in VAT on all domestic fuel bills, winter fuel payments for pensioners, and free TV licences for the over-75s. We have also increased the amount of savings that pensioners may have before they are taken into account when calculating entitlement to income-related benefits, including council tax benefit.
The pension credit, which will be introduced from October, will build on the improvements already made to the minimum income guarantee. However, it will go further by simplifying benefits for pensioners, and by directly rewarding savings. It will have two elements: the guarantee credit and the savings credit. The pension credit will ensure that, for the first time, saving will be rewarded instead of being penalised, and that pensioners will gain from having done so.
In the light of the issues raised by the hon. Lady and the hon. Member for Christchurch, I believe that the system that is in place provides a more generous level of support for pensioners than that provided under the previous Administration. We want to ensure that we distribute grant to local authorities fairly, so that councils get not just a cash increase, but a real-terms increase in grant. The hon. Lady's local authorities are receiving those sums, and as I said, I do not believe that many excuses exist for excessive council tax rises. I
accept that local councillors face difficulties, and it was interesting and useful to meet elected members and officers from the Dorset authorities in undertaking local consultation on the grant distribution process. However, I believe that the council tax system is working reasonably well as a local tax. The hon. Lady should not forget that its predecessor was the poll tax; sometimes, people have short memories in respect of that tax. The current tax is largely accepted and understood by local taxpayers. It is generally regarded as related in some respect to the ability to pay, in that it is linked to the property lived in by the person paying.We have given local authorities real increases in grant, but what councils choose to do about council tax is their final decision. I understand the hon. Lady's concerns, but I believe that Dorset is getting a reasonable deal. Councillors have to be held to account, and at the end of the day the council tax is a matter for locally elected councillors.
- Adjourned accordingly at twenty-eight minutes to Seven o'clock.
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