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Pensioner Poverty

15. Laura Moffatt (Crawley) (Lab): What measures he has taken to eradicate pensioner poverty. [181902]

The Secretary of State for Work and Pensions (Mr.   Andrew Smith): We have taken many steps to tackle pensioner poverty, including the introduction of pension credit and winter fuel payments and a 7 per cent. real rise in the level of the state pension. As a result, we will be spending nearly £10 billion more a year on pensioners, including £5 billion more on the poorest third. That means that the poorest pensioners are on average £33 a week better off than they would have been under the 1997 system. Relative pensioner poverty is down by 500,000, with absolute poverty down by 1.8 million.

Laura Moffatt: Will my right hon. Friend join me in paying tribute to organisations such as the Crawley pensioners action group that continually draw attention to issues relating to our poorest pensioners. Does he agree that those community groups help to raise such issues and ensure that pensioners know about all the new benefits available to them through their campaigning activities and that they play an essential part in improving pensioner incomes?

Mr. Smith: Yes. I am pleased to join my hon. Friend in praising the work of the Crawley pensioners action group, with which I know she works closely. Such groups—in Crawley and up and down the country—not only make an invaluable contribution to the debate about pensions and future pensions policy, but enrich our democracy in many other ways. The active engagement of senior citizens in assessing and working with services locally, and in helping us to formulate policy, is invaluable. We are developing closer
 
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partnership working between the Pension Service and such groups and there is funding available through the new partnerships fund, of which I will send her details.

Sir Nicholas Winterton (Macclesfield) (Con): Will the right hon. Gentleman have a word with the Chancellor of the Exchequer, with whom he worked for many years, to see whether, to reduce pensioner poverty rather than increase bureaucracy, the Chancellor will entirely exempt from taxation the state retirement pension for all, and reduce the rate of taxation on all pensions and annuities for those who are responsible enough to save for their retirement years? Is that not the way to encourage a reduction in pensioner poverty without increasing bureaucracy?

Mr. Smith: It is not increasing bureaucracy to operate the pension credit in the effective way that we are, given the example cited in Saturday's edition of The Daily Telegraph, to which my hon. Friend the Minister for Pensions referred. More than 3 million individuals are getting that money, and it is much needed by them. I would hope that the hon. Gentleman would welcome the progress that we are making on that and join us in pressing for higher take-up.

On the hon. Gentleman's points about taxation, of course I speak to the Chancellor about those matters. The problem with the hon. Gentleman's proposal is that it would involve a redistribution of income from poorer working people to more affluent pensioners. On reflection, I think that he will see that that would not necessarily be the fairest thing to do or the best use of available resources to ensure that they reach the pensioners who need them most.

Pension Protection

18. Mr. Jonathan Sayeed (Mid-Bedfordshire) (Con): If he will permit unclaimed assets to be used to offer further assistance to those occupational pension scheme members who will not be covered by the pension protection fund. [181905]

The Minister for Pensions (Malcolm Wicks): The Government laid a report on 30 June on their research into the numbers affected where pension schemes wind up underfunded with insolvent employers. That suggests that some 65,000 people face significant losses of more than 20 per cent. of their expected pensions, of whom around 35,000 face losses of over 50 per cent. That confirms that our commitment of £400 million of public money over 20 years provides a sound basis for a worthwhile assistance scheme. We hope that industry will add to that.

As for unclaimed assets, my right hon. Friend the Chancellor made it clear in the March Budget that we want as much as possible to reunite unclaimed assets with their rightful owners. That is our No. 1 priority. Where the assets cannot be so reunited, they should be reinvested to benefit the whole of society. There are no plans to use such assets to provide assistance for those people who have lost pensions.

Mr. Sayeed : That is a very disappointing answer. The Minister knows that £20 million a year is just a small proportion of the loss that has been suffered by those
 
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pensioners. First, does he accept that that is the case? Secondly, as the Chancellor has already taken his cut of the unclaimed assets, would it not be much better to assist pensioners who face real hardship by allocating that money when it is clearly proved to be unclaimed?

Malcolm Wicks: I do not accept that the money that the Exchequer has made available—£400 million—is a small proportion. It will enable the restoration of a significant proportion of people's pension rights, and that is important. The assistance scheme is a major move in the right direction. What was disappointing was the Conservative Opposition asking the House to decline to give the Pensions Bill a Second Reading.

Mr. Dennis Skinner (Bolsover) (Lab): Will my hon. Friend look seriously at the claim by Anglo United, which used to be Coalite Products Ltd., because a number of people are affected as a result of changes that took place in the company some time ago? Will he tell me in writing whether they are included in the scheme that he announced a few weeks ago? It would be helpful to know that they are, and I am expecting good results.

Malcolm Wicks: Of course, we are looking at the details of all schemes to see whether their members are eligible for the assistance package. We now have research evidence on the numbers affected and are in consultation with trade unions and others to get the details right with a view to laying regulations later this calendar year and putting a scheme in place by spring next year so that benefits can be paid soon after. I will, however, write to my hon. Friend about the case that he raised.

Carer's Allowance

21. Mr. Huw Edwards (Monmouth) (Lab): How many carers in (a) England and (b) Wales are in receipt of carer's allowance. [181908]

The Parliamentary Under-Secretary of State for Work and Pensions (Maria Eagle): On 28 February 2004, the latest date for which information is available, some 351,000 carers in England and over 29,000 carers in Wales were receiving carer's allowance.

Mr. Edwards: I acknowledge the improvements that the Government have made to carer's allowance, but does my hon. Friend accept that it is the lowest income replacement benefit of all at £44.35? Will she acknowledge the campaign to try to increase it to the level of the state pension, which would be a significant improvement in the provision for 400,000 carers and
 
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one more measure to add to the many that the Government have introduced to increase provision for carers?

Maria Eagle: I am glad that we have reached a question about carer's allowance, which is something that I can talk about at length, if you would allow me, Mr. Speaker. I congratulate my hon. Friend on his well-known efforts on behalf of carers. He is recognised in the House as a persistent and effective advocate for their rights and opportunities, not just in his own constituency but throughout Britain. I am aware of the campaign highlighted by Carers UK in the recent carers week to increase carer's allowance.

My hon. Friend thinks that £44.50 or so a week is at the lower level of income maintenance, but carer's allowance can give rise to other payments. Some 300,000 carers are eligible for carer's premium in the income replacement benefits and the Government recently increased that premium by more than £10 a week, so there is an additional £25.55 a week, Mr.   Deputy Speaker—I am sorry for demoting you, Mr. Speaker—in income-related benefits. A slightly different payment—

Mr. Speaker: Order. The Deputy Speaker will be on duty by the time that the hon. Lady finishes.

Mr. Simon Burns (West Chelmsford) (Con): Does the Minister acknowledge the tremendous work and contribution of carers throughout the country? The figures that she gave the House suggest that a significant number of people are not benefiting from the allowance and I suspect that a number of my constituents who do a fantastic job, day in, day out, caring for others may be ignorant of their entitlement. What assurances can she give my constituents and those of other hon. Members that the Department will draw attention, through advertising and other targeted means, to the fact that they might benefit from the allowance?

Maria Eagle: The hon. Gentleman is right that many carers eligible for carer's allowance do not claim it, but 420,000 do so. We make every effort to make clear to people who interact with the benefits system what benefits are available and many local carers' groups also undertake such work. I am sure that, as a result of efforts by the Department, hon. Members and carers' organisations, carers who may benefit from those payments will find out about them and apply for them. They can now do so via the internet, as the allowance is one of the first Government benefits that can be e-claimed and 3,400 people have already made such a claim.

Mr. Speaker: I thank the hon. Lady for her brief reply.

 
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