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Pensions Bill

I was very pleased to learn that the Government had accepted in principle at least that the basic state pension should be linked to the wages index, as I think we all were. It will be recalled that Lady Castle, with my support, repeatedly sought to persuade the Government of the necessity to do that, but it was always opposed on the basis that it would mean increases for people who did not really need it. It has been the view of many of us, including the TUC, that the basic state pension should be increased and then linked to the wages index, which would have meant that far fewer people would have to rely on means-tested benefits, which are expensive to administer, often do not reach those who are entitled to them and are regarded as humiliating for many who need to claim them. The Bill envisages linking the BSP to the wages index, but not until a date some time in future. The National Pensioners Convention believes that about3 million present pensioners may not be alive by then to benefit from it. Baroness Castle would, I am sure, have been pleased at the Government’s change of heart about the wages index link, but she would have been less than happy about the delay in its introduction so that many will not benefit. Moreover, it looks as though the Government are intent on providing themselves with a get-out clause if it is not felt to be affordable at that time. That is not satisfactory; it should be introduced as soon as possible after the Bill becomes law. If it is claimed that many will benefit who do not need it, the answer is simple; the better off will simply pay more tax. It will be of enormous assistance to many. I hope the Government will see the justice of this. It was originally intended that BSP should be linked to the wages index, but that was changed by subsequent Governments. I understand that, had it been in operation all these years, the BSP would now be worth about £142 a week, enough to lift many out of the need to claim means-tested benefits. Although the pension credit has assisted many pensioners, as we all agree, it has not helped everyone, and I urge the Government to arrange for the wages index link to operate earlier than has hitherto been indicated. I support the amendment.