§ 1. Commander SOUTHBYasked the Secretary of State for War whether he is aware that the proposed forthcoming reduction of 7 per cent. in retired Army officers' pensions will cause hardship to many retired officers; and whether he will consider taking the necessary steps to stabilise all pensions at their present figure?
§ The SECRETARY of STATE for WAR (Mr. T. Shaw)As I stated in my reply on 28th January, the effect of the revision of the rates of officers' pay and retired pay on 1st July next will be that the standard rates will be subject to a 7 per cent. reduction instead of 6 per cent. as at present. I am not aware that this difference of 1 per cent. will cause great hardship. In any case we have reduced 1 per cent. less than would have been the case had we followed the regulations we found in force. As regards the last part of the question, this point will receive consideration in the light of the report of the Royal Commission on the Civil Service which, as the hon. and gallant Member is aware, is considering a similar question in relation to the Civil Service.
§ Mr. HORE-BELISHAWhat will be the saving to the Department, by these reductions?
§ Lieut.-Colonel ACLAND-TROYTEWhy are these pensions to be brought down when the cost of living is going up?
§ Mr. SHAWA balance is struck on a certain date. Had the balance been followed, the reduction would have been 8 per cent. The Civil Service received a concession of 7 per cent. That concession was given to the officers in question, and consequently the arrangement was made.