Torsten Bell

The poverty assessment, which we provided to the Work and Pensions Committee, does not take into account any increase in pension credit take-up, which I will come to shortly. The shadow Minister, the hon. Member for Faversham and Mid Kent (Helen Whately), talked about absolute pensioner poverty—the kind of poverty that should be falling every year as an economy grows. But relative poverty—a form of poverty that we look at—rose under the last Administration. Opposition Members may not like to hear this, but relative pensioner poverty rose by 300,000 under the last Government. I just gently say that when it comes to pensioner poverty, we have more to do—I take the hon. Gentleman’s point seriously—but the record of recent years is not one of success on that front. Everyone in this House knows the economic and fiscal context—the economic stagnation of the past decade, visible in flatlining wages, collapsing public services and strained public finances. Every economist and every person in the country knows that Britain has lived through an unprecedented economic failure. In a challenging fiscal environment, difficult choices are unavoidable. The Government have set fiscal rules and we will stick to them. But, as some older Members may remember, prudence is for a purpose: to support a growing economy that benefits everyone. It is the prerequisite for rescuing our public services and rising living standards for workers, but also for pensioners.