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Benefits Uprating

Obviously the Conservatives abolished it in the 1980s. [Interruption.] Opposition Front Benchers say that we have done nothing about the earnings link for the basic state pension while we have been in power, but we have raised the basic state pension above prices every year since 1998-99. Every year we have seen a real increase above RPI; in 18 years, the Conservatives increased it once, and they did so to compensate for the introduction of VAT on fuel. We have a far greater record of which to be proud than the Opposition. I can confirm that the personal accounts reform programme will begin in 2012 as planned, but there will be a slowing of implementation to enable us to ensure that this very complicated and large programme can be put into effect appropriately. On additional pensions, the hon. Gentleman asked why there is no increase this year, and that is because of the feed-through to those private sector pensions that are contracted out. Such a measure would be extremely complicated, and there would then be an increasing difference between public sector pensions, which would get the increase, and private sector pensions, which are often linked to RPI increases and have planned for a zero-rate increase. We felt that that situation would not be desirable, but I emphasise that all pensioners will see a real-terms increase because of the 2.5 per cent. increase that my right hon. Friend the Chancellor announced in his pre-Budget report yesterday. The Opposition have spent the past few months telling us that in the depths of a recession we should cut public expenditure. They voted against the fiscal stimulus and the extra help from the Department for Work and Pensions for those in the real economy who have to deal with the effects of the recession, and for those who have been unemployed. Indeed, the Opposition continue to say that they would cut the deficit further and faster, but I still do not know and I have not heard from the hon. Gentleman whether they support the uprating—whether they support the £2 billion of extra money that we have been able to allocate for the poorest and most vulnerable in our society. I note with interest that he gave us no indication of whether the Opposition support today's statement.