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Pensioner Poverty

Absolutely. That work is a very valuable complement to the whole process. I want to ensure that the Government are as systematic as we can be, so that we can get as much money automatically to people as we can. As I said, we have been running a pilot scheme and have identified a sample of 2,000 people who, on the face of it, appear to be entitled to pension credit and are not claiming it. We have made payments to those people of what we think they should get. We have contacted them and said, ““The money that's arriving in your bank account is what we think you could get as pension credit. Would you like to make a claim?”” As my hon. Friend says, that has been going on and we are closing the study in the middle of March. We are hoping to learn from that how far we can use the information we have to ensure that people get what they are entitled to. We will certainly be reporting back to the House on that. What we have to do—and what the Government are doing—is to ensure that the money people definitely do claim is better. Let me give an example. The state pension, which has virtually 100% take-up, is worth having. My hon. Friend will know that, after 30 years of the link with earnings being broken, we restored the earnings link this year. Over the lifetime of their retirement, a typical pensioner retiring this year can expect to get an extra £15,000 in state pension compared with the old price link. That money is guaranteed and we know they will claim it. My goal for the longer term is to try to rebalance the system, so that we do not have, as he rightly says, a wholly inadequate basic pension—someone cannot live on £97 a week—and a mass means-testing system that results in many people failing to claim. There will always be a need for a safety net and a catch-all, but I would rather ensure that the pension is at a decent level. Restoring the earnings link is the first step towards that, but I hope we can go further. My hon. Friend rightly raised the issue of investment income and set out a very important context. In fact, many pensioners, particularly poorer pensioners, have next to no investment income. He quoted some figures. Regarding the poorest fifth of single pensioners, who are living on £136 a week, just £4 of that is coming from investment income. So even if I could magically double interest rates, I would be giving them an extra £4 a week. That clearly matters for those who have structured their finances to depend on interest income. I will say a word about that in a moment. However, for us as a Government, getting pensions, pension credit and so on right will have a substantial effect. My hon. Friend is right: falling interest rates are an issue. He mentioned the granny bond or, as I gather it used to be called, the pensioner guaranteed income bond. That bond was withdrawn by National Savings and Investments in 2008, when it was paying an interest rate of 3.9%. That was a few years ago. Obviously, when there is a base rate of 0.5%, one might think that savings rates had plummeted so far there would be nothing like that out there. I have done a bit of research and, for example, today on the market 3% interest rates are available for a one-year bond, and for three-year bonds 4% interest rates are available. However, people do not necessarily know about that. When I responded to my hon. Friend in the House a little while ago and mentioned the issue of shopping around, we discussed the fact that, if someone has access to the internet, dealing with such issues is straightforward. Moneymadeclear and so on are good websites. However, the Consumer Financial Education Body also offers a helpline that people can ring up. If someone is not sure whether they are getting the best interest rate and they want to know what is available, they can ring the helpline number. I shall read that number into the record: 0300 500 5000. People can simply phone that number and say, ““I've got this amount of savings. What sort of options do I have?”” As I mentioned, with savings rates of 4% or more and increased limits on individual savings accounts available, decent rates are out there. However, too many people are trapped in receiving very poor interest rates. Let me give an example. I noticed this morning that a high street building society is offering what it calls an e-savings plus account that pays 0.1% interest, and a high street bank is offering what it calls a premier saving account, also offering 0.1%.