§ 60. Mr. Lipsonasked the Secretary of State for War how much it would cost to restore the cuts imposed in 1935 on retired officers' pensions?
§ Mr. SandysThere was no cut imposed in 1935 on retired officers' pensions. Officers' retired pay, which had previously seen subject to cost of living adjustments, was stabilised, in common with the pay and pensions of the Fighting Services and 1801 the Civil Service, at or slightly above the level at which it then stood. The cost to increase the rates of retired pay to the standard rates originally fixed in 1919 would amount to approximately £325,000 a year for officers at present in receipt of retired pay, and probably about £500,000 a year when these numbers are increased at the end of the war by the relegation to retired pay of officers now serving. Moreover, officers' retired pay could not be dealt with in isolation and the cost of applying a similar principle over the whole field of service emoluments and pensions would be very much greater.
§ Mr. LipsonIs the hon. Gentleman aware that this cut in retired pay amounted to as much as 9 per cent. in individual cases? Will he not give consideration to this restoration, because there are a great many retired officers who are suffering considerable hardship?
§ Mr. SandysI explained that the £325,000 is not a total figure. This question cannot be considered apart from the rate of pension of retired State servants as a whole.
§ Mr. LipsonThe hon. Gentleman is only asked to deal with this aspect of the question. Any other case can be dealt with when it arises. This is a problem which ought to be dealt with, and the cut ought to be restored.
§ Mr. SandysThe Chancellor of the Exchequer could never agree to look at one aspect of a thing in isolation.
§ Mr. LipsonHas the Chancellor been approached on the matter?