§ 76. Mr. GUYasked the Minister of Pensions whether, in view of the interest which was displayed on the occasion of the annual conference of the British Legion (Scotland) in a scheme to make it easy for war pensioners to save out 2238 of their pensions with a view to securing, by means of an annuity or otherwise, an increased income in their later years, he will take steps to see whether any such scheme can be put in operation?
§ The MINISTER of PENSIONS (Mr. R. S. Hudson)Yes, Sir. With the assistance of my right hon. Friend the Chancellor of the Exchequer, I have been able to make arrangements by which any disability pensioner may, if he wishes, instruct my Department to reserve a small portion of his pension each week and invest it for him, according to his own choice, in National Savings Certificates, or in the Post Office Savings Bank, or in a Trustee Savings Bank. The average age of war pensioners at the present time is not more than 47, and a saving which is thus automatically effected without trouble to the pensioner will, if continued, yield him, at the age of 60 or 65, a capital sum which can be used to purchase an annuity for himself or his wife or otherwise add to his income when he may most need it. With the improving state of employment generally, and particularly the favourable position in this respect enjoyed by pensioners, of whom only 8 per cent. are known to be unemployed, it has seemed to me that a favourable opportunity presents itself to assist pensioners, who may not require, while in work, to spend the whole of their pensions, to invest a portion of them in order to make additional provision for their later years.
§ Captain GUNSTONMay I ask whether the Ministry will retain control of the sum reserved under the scheme and, if so, what guarantee the pensioner will have that his savings are being invested to his advantage?
§ Mr. HUDSONThe Ministry will not retain control of the sums directed to be reserved out of pension, which remain the man's own property, but will invest them in the pensioner's name and the Ministry will be in the position of the pensioner's agent for this purpose. It is my intention to set up a small board of supervision to include representative persons of standing, outside the Ministry, among whom I hope to include a representative of the British Legion. The board will be a guarantee that the handling of the reserved portion of each pension is carried out in accordance with the pensioner's wishes.