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Proceeding contribution from Stephen Timms (Labour) in the House of Commons on Thursday, 17 February 2011. It occurred during Debates on delegated legislation on Social Security.


Social Security

The whole country eagerly awaits the next Labour party manifesto, but I must urge the hon. Lady to be patient on that front. We welcome the 4.6% increase in the basic state pension this year, for which the order provides, in line with RPI for next year, not the triple lock or the lower CPI. But this is something of a smokescreen to cover up the true nature of the Government's intentions, which we have been able to smoke out a little in this debate. Why does the Minister think that CPI would be a better measure of inflation for pensioners than RPI? I am yet to be convinced of that. For pensioners and low-income families, a strong argument can be made that average inflation is more than either RPI or CPI, because of fuel and food. That point was certainly made in the representations that many of us will have received in recent weeks. In opening the debate, the Minister mentioned the views of the Royal Statistical Society. In its letter to my hon. Friend the Member for Leeds West, it said:"““while the consumer price index (CPI) is acceptable for macroeconomic purposes and for international comparisons within the EU we do not believe its coverage is generally appropriate for inflation compensation purposes””." That looks like a strong criticism by the society.


Secondary information

Type
Proceeding contribution
Reference
523 c1185-6 
Session
2010-12
Chamber / Committee
House of Commons chamber
Subjects
Index linking Workplace pensions Social security benefits State retirement pensions Uprating Consumer prices index Average earnings
Legislation
Guaranteed Minimum Pensions Increase Order 2011
Social Security Benefits and Up-rating Order 2011
Link
View this Proceeding contribution on www.publications.parliament.uk