THIS Letters page, and my postbag, have carried a number of letters in recent weeks on the Government's policies for pensioners.

It seems that half of my constituents think that the Government is not doing enough to help poorer pensioners and the other half think we are doing too much. I think that probably means the Government has got it about right!

Last week's pre-Budget statement from the Chancellor of the Exchequer made two new important announcements of interest to pensioners.

Firstly, next year's annual pension increase will be increased by 2.5 per cent or the rate of inflation, whichever is higher.

Pension Credits will top up incomes to a guaranteed minimum level of at least £102.10 per week for single pensioners and £155.80 for couples.

The basic state pension will be increased by £2.15 a week, to £79.60 for a single pensioner, and £127.25 a week for a couple. Seven years ago, under the last Tory Government, it was £61.16 a week for a single pensioner and £97.75 a week for a couple.

The new Pension Credit initiative, which is currently benefiting 2.4 million households across the UK, will give more than £3 a week extra for single pensioners and £5 a week extra for couples. The average Pension Credit award in Bury North is £43.01.

Secondly, the Chancellor has allocated an extra £406 million grant to local councils to help with next year's council tax. This will be of particular interest to pensioners who are just above the income limit for Pension Credit and have had a justifiable grievance about council tax increases in recent years.

There are three other points that I think are important.

We need to remember that council tax isn't an end in itself. We pay it to provide for a range of local services, and the biggest share of the council's budget is spent on children and pensioners. We can all be particularly pleased that Bury Council has just been designated the fastest improving council in England and one of the very best local education authorities.

I have yet to meet any retired person who would prefer to swap the £200 tax-free winter fuel payment for a taxable annual earnings-related increase. It's worth remembering that before the winter fuel payment was introduced by the Labour Government, pensioners were only entitled to a £10 Christmas bonus under the Tories.

The biggest single factor in improving both the standard of living and the quality of life for all pensioners is not the level of the annual increase, but the quality of the National Health Service. I know from my postbag and my visits right across the constituency that the Government's record new investment in the NHS is now delivering dramatic improvements in quality of care to pensioners.

The Tories, of course, remain committed to introducing charges at every level of the National Health Service. I have yet to meet anyone in my constituency who thinks that such a policy would be anything other than a total disaster for pensioners.

A Labour National Health Service, free at the point of need: or a Tory NHS where you pay towards every bit of treatment you receive. That's the big divide on pensions policy, and every pensioner in Bury knows it.

DAVID CHAYTOR,

MP for Bury North.