UPRATING OF BASIC STATE PENSION

That this House welcomes the five per cent. increase in the basic state pension for 2009-10; believes that pensioners deserve extra support to help respond to the difficulties faced by the economic downturn; recognises that many pensioners rely on the interest on their savings for the additional income and due to interest rates reductions and a historically low interest rate they have lost out financially; expresses concern that the Government's economic projections show the retail prices index (RPI) as negative in September 2009 and that this figure is used to calculate the basic state pension increase for year 2010-11; notes with concern that in the light of a negative RPI change, the Government will use its discretion to the uprate in the basic state pension; and further believes that, given the impact of the downturn on pensioners, the Government should commit to a state pension uprate for 2010-11 of no less than that introduced for this financial year.