Social Security — House of Commons, 2018-02-05
Topic: Labor
Christopher Laurie Malthouse (Conservative, Centre-right): With the forbearance of the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) for any prior confusion, I move the motion. In my view, you will pleased to hear, Mr Speaker, the provisions in both orders are compatible with the European convention on human rights The draft Guaranteed Minimum Pensions Increase Order 2018 is an entirely technical matter that we attend to each year in this House and I do not imagine that we will need to spend much time on it today. The statutory instrument provides for contracted-out defined benefit occupational pension schemes to increase members’ guaranteed minimum pensions that accrued between 1988 and 1997 by 3% I turn to the rates that are included in the draft Social Security Benefits Up-rating Order. The Government continue to stand by their commitment to the triple lock guarantee, which means that, this year, the basic state pension and the full rate of the new state pension will go up by the increase in prices, at 3%, as outlined in the autumn Budget on 22 November last year. We will increase the pension credit standard minimum guarantee by more than the growth in earnings to match the cash increase in the basic state pension, and we will increase benefits to meet additional disability needs and carer benefits by 3% in line with prices The Government’s continuing commitment to the triple lock for the length of this Parliament means that the basic state pension rate for a single person will increase by £3.65 to £125.95 a week from April 2018. As a result, from April 2018, the full basic state pension will be £1,450 a year higher than it was in April 2010. We estimate that the basic state pension will be around 18.5% of average earnings—one of the highest levels relative to earnings for more than two decades In 2016, the Government introduced the new state pension for people reaching their state pension age from 6 April 2016 onwards, with the aim of making it clearer to people at a much younger age how much they are likely to get and providing a solid base for their saving and retirement planning. We are committed to increasing the new state pension by the triple lock for the duration of this Parliament. As a result, the full rate of the new state pension will increase by 3% this year, meaning that, from April 2018, the full rate of the new state pension will increase by £4.80 to £164.35 a week—around 24.2% of average earnings The benefits of the triple lock uprating will also be passed on to the poorest pensioners through an increase in the standard minimum guarantee in pension credit to match the cash rise in the basic state pension. That will be paid for through an increase in the savings credit threshold. To match the cash increase in the basic state pension, the standard minimum guarantee will rise by 2.29%, which exceeds growth in earnings of 2.2%. That will mean that, from April 2018, the single person threshold of this safety net benefit will rise by £3.65 a week, to £163 On the additional state pension, this year, state earnings-related pension schemes will rise in line with prices by 3%. Protected payments in the new state pension will be increased in the same manner. Consistent Government support for pensions has seen the percentage of pensioners living in poverty fall dramatically in the past few decades; it is now standing close to the lowest rate since comparable records began.