HC Deb 17 July 1946 vol 425 cc1199-201
16. Mr. Willis

asked the First Lord of the Admiralty if he is aware that considerable dissatisfaction exists amongst many older naval pensioners, who served during the recent war, at the amount they will receive under the reassessment of pensions scheme; and if he will consider retaining the Greenwich Hospital age increases, as an addition, for all pensioners who would normally have become eligible for these benefits.

Mr. Alexander

The reassessment scheme provides for the reassessment of pensions to the new code rates and conditions, less an abatement to allow for the special benefits already received through the payment of pension in addition to full pay during re-employed service. No age increases are payable on the new code pensions, and it follows that no age increases can be paid on reassessed pensions.

For a man with six years war service, the increase payable under the reassessment scheme would always be greater than the amount of age increases surrendered. Many of the older pensioners will, however, as an alternative to reassessment, qualify for increases of 30 per cent. on their existing pensions, including age addition, under the Pensions Increase Act; and it cannot be expected that the reassessment scheme will in all cases produce an increase of as much as 30 per cent. Every man will have his alternative entitlements explained to him in detail, and will be able to choose that which suits him best.

Mr. Willis

Can I take it from that answer that no man of the age of 60 will actually be worse off? The figures given to me in a reply last month indicated that many men of the age of 60would actually be worse off as a result of having served during the war.

Mr. Alexander

I follow my hon. Friend's point clearly. I think that if a man were so ill-advised as to choose the wrong alternative when it was explained to him, in one or two cases he might, over the whole period, be rather worse off. But if he chose the right one —that is to say, if, under the reassessment of the new pay code, he would be getting less than the 30 per cent. plus age increase than under the other—he would be very foolish not to stick to his present scale. If he chooses that one he will not be worse off.