HC Deb 30 July 1951 vol 491 cc954-8
The Minister of Defence (Mr. Shinwell)

With your permission, Mr. Speaker, and that of the House, I should like to make a statement on Service retired pay and pensions.

A White Paper which is being published today describes the substantial improvements which the Government have approved in the code of retired pay and pensions of the Armed Forces, including the Women's Services.

First, an entirely new feature will be introduced into the code. This will take the form of a terminal grant, payable in addition to Service retired pay and pension, to help the long service Regular to resettle in civil life. The standard rate in the case of officers will be £1,000 irrespective of rank; for ratings, other ranks and airmen the grant will vary with rank and length of service from £100 to £600. The grants will be tax-free.

Second, the present rates of Service retired pay and pension will be increased. For officers the increases range from £25 to £200 a year according to rank. For ratings, other ranks and airmen the improvement takes the form of a considerable increase in the element of pension earned by years of service in non-commissioned and warrant rank. Typical rates of pension will be £2 Os. 10d. a week for a serjeant with 22 years' service, instead of £1 14s. 10d. as at present, and £3 6s. 7d. for a warrant officer, Class I, with 27 years' service, instead of £2 12s. 10d. These changes will apply to officers retired, and ratings, other ranks, and airmen discharged to pension, on or after 1st September, 1950. Details will be found in the White Paper to which I have referred.

I think the House will agree that this improvement, in conjunction with the improvements in pay and other conditions of service announced last August, should do much to encourage greater numbers of men and women to make the Services their career.

Mr. R. A. Butler

is the right hon. Gentleman aware, first, that my hon. and right hon. Friends have always been desirous of finding means of encouraging those who serve us in the Armed Forces by giving rewards in this sort of way? Second, does the right hon. Gentleman's statement mean that nobody who retired or is retiring before the date mentioned, namely, 1st September, 1950, will receive any of these awards? Third, while I recognise that the sum must be cumulative, can the right hon. Gentleman give us any idea of the total annual cost?

Mr. Shinwell

This scheme will not apply to those who retire, whether officers or other ranks, before 1st September, 1950. It is anticipated that the scheme may cost, to begin with, £2 million a year, but that it may increase to round about £5 million.

Mr. Paget

is this not very unfair to those who retired before September and whose pensions have been greatly reduced in value by the increase in the cost of living? Cannot it be reconsidered?

Mr. Shinwell

This matter was fully considered by the Chancellor of the Exchequer, who made a statement in the House some time ago, and I have, in the light of the statement made by the Chancellor, replied to Questions accordingly. The matter of Service pensions before the date when this scheme begins is bound up with the general question of pensions and, I am afraid, permits of no amendment at present.

Brigadier Head

may I express to the Minister of Defence satisfaction with the statement he has just made and the hope that it will stimulate Regular recruiting? May I also say that that satisfaction is stimulated by the fact that almost every suggestion incorporated in his statement was made in speeches made by hon. Gentlemen on this side? [HON. MEMBERS: "When?"] In the last debate on the Army Estimates. Hon. Members can look it up in HANSARD. That is a fact that I am sure the right hon. Gentleman will have the generosity to admit.

Mr. Shinwell

i do not deny that hon. and right hon. Gentlemen on the other side have occasionally offered suggestions on this subject—

Mr. Hamilton

when in Opposition.

Mr. Shinwell

i have no wish to deny the desire of the Opposition, but, after all, it is the Labour Government who have done it.

Mr. Bellenger

while congratulating the Government on the considerable progress they have made judging by the statement of my right hon. Friend today, may I ask what consideration induced him to make the distinction that officers shall have a lump sum without any length of service qualification, whereas in the case of the ranks it is dependent not only upon rank but length of service?

Mr. Shinwell

These matters were very carefully considered, and no doubt the right hon. Gentleman the Member for Saffron Walden (Mr. R. A. Butler) will agree that it is proper to give careful consideration to such matters; but, having given such consideration, we decided to continue the procedure that has been applied in the past.

Mr. Douglas Marshall

while I welcome this statement, may I ask the right hon. Gentleman what the cost would be if it applied to all the Service pensioners?

Mr. Shinwell

i could not say without notice.

Mrs. Middleton

would my right hon. Friend say whether the tax free resettlement grant will be the same for women as for men when they have given comparable service and are of comparable rank?

Mr. Shinwell

The tax free resettlement grants apply both to men and women. Women, as will be seen from the White Paper, receive two-thirds of the amount the men receive.

Captain Ryder

will the men who have been retained longer than the time of service for pension—for 18 months longer, for instance, be able to earn increased pension?

Mr. Shinwell

as I understand that question I would say yes, but I should not care to commit myself fully about it. I should like to look at it.

Captain Ryder

will the right hon. Gentleman bear in mind that this is a very important matter? These men feel that they have a deep sense of grievance.

Mr. Shinwell

i have not yet heard about the grievance; the scheme is only just beginning.

Lieut.-Colonel Lipton

in the case of other ranks will the terminal grant be payable pro rata if the full term of service has not been, for some adequate reason, completed?

Mr. Shinwell

i think it depends on length of service—after a period of service.

Mr. H. A. Price

can the right hon. Gentleman say how the new rates he has just announced compare with the rates payable in 1945, after making allowance for the reduction in the value of money that has occurred since?

Mr. Shinwell

They are very much. better.