HC Deb 16 November 1953 vol 520 cc1388-9
18. Mr. Dodds

asked the Minister of Pensions and National Insurance whether he will grant a 10s. a week pension without a retirement condition to those reaching pensionable age.

Mr. Peake

No, Sir.

Mr. Dodds

Then will the right hon. Gentleman explain why, in "The Right Road for Britain," it says that the Conservative policy for Britain will Give the choice of a pension of 10s. a week without a retirement condition for those who are disappointed at the loss of this right"? What a wicked document. It is sheer dishonesty.

Mr. Peake

That document was drawn up for the General Election before the last—for the 1950 Election. Since then, we have come to the conclusion that it would be a very retrograde step to introduce a 10s. unconditional pension which would be worth today less than 5s. a week.

Mr. Dodds

Will the right hon. Gentleman tell me in which document that information was contained, so as to make this one out of date?

Mr. Peake

Our policy statement was the 1951 manifesto.

Mr. Dodds

It does not say that.

29. Dr. Stross

asked the Minister of Pensions and National Insurance whether he has noted the capital sum now available to the National Insurance (Reserve) Fund and National Insurance Fund; and whether, in view of the size of the fund, he will increase retirement pensions by 10s. a week.

Mr. Peake

The commitments already incurred in respect of pensions at their existing rates greatly exceed the amount of these balances. They cannot be regarded as available for the purpose suggested.

Dr. Stross

Does not the Minister agree that nearly £40 million a year is available in interest on the fund, which amounts to over £1,700 million? If this increase of 10s. were made, the offset in savings from the Assistance Board would be £25 million, so that on interest alone, we should have over half the amount already? Will he not consider it from that point of view?

Mr. Peake

That sounds very ingenious, but I do not think it would be justifiable to use these reserves for the purpose suggested, when one reflects that the outstanding liabilities of the National Insurance Fund are at least 10 times the amount of the reserves, that is to say, about £15,000 million.