§ 1 and 23. Miss Burtonasked the Minister of Pensions and National Insurance (1) whether he is aware that, while there has been no increase in retirement pensions this year, the prices of many necessities for old people have risen; and what recent investigations have been made by his Department to ascertain the effect upon those people dependent upon retirement pensions;
(2) whether he is aware that the delay in the announcement of a pensions increase has caused much distress among old-age pensioners; that many fear being unable to afford necessities during the coming winter months; and if he will, therefore, grant some interim increase immediately.
§ 2. Mr. Haleasked the Minister of Pensions and National Insurance whether, in view of the increasing hardship of old-age and other pensioners, he is now in 3 a position to announce Her Majesty's Government's proposals for an increase in the basic rate.
§ The Minister of Pensions and National Insurance (Mr. Osbert Peake)I would remind the hon. Members that no pensioner need suffer hardship because he has nothing but his retirement pension to live on, since he can always apply to the National Assistance Board for supplementation which is now granted on a scale higher in real value than at any time before the scales were raised in 1952.
§ Miss BurtonOn a point of order, Mr. Speaker. May I ask you whether you consider that Questions Nos. 1 and 23 are in any way similar? The Minister was too quick in giving an answer for me to protest, but I feel that both Questions raise an entirely different matter.
§ Mr. SpeakerThey seem to me to be somewhat similar. Perhaps the hon. Lady can show the difference in the contents of the Questions by asking a supplementary question.
§ Miss BurtonThank you, Mr. Speaker. Is the Minister aware that he has not answered either Question at all? Dealing with the first one, does he not really think it is scandalous that any decent person should talk about the position of old people in the way that he has today? Is he aware that most old people have less than 2s. a day to spend on food at present? Secondly, is he aware that the cost of food alone, according to the official index, has risen by 22 per cent. since the last General Election? Thirdly, is he aware that the cost of basic foods on which old people depend has risen by 40 per cent.? May I ask that as a supplementary to the first Question?
§ Mr. PeakeI am sure that the National Assistance Board will take note of the hon. Lady's suggestions, but it is incontrovertible that the scales of assistance give a better standard of living today than at any time between 1946 and 1952.
§ Dr. SummerskillHaving regard to the record number of Questions on the Order Paper today on this subject, which indicates the growing concern of the country, will the Minister take this opportunity to make a statement with regard to any increase?
§ Captain PilkingtonIs my right hon. Friend aware that the cost of living in the first half of this year has risen only 1-4 per cent.? Can he explain why his predecessors did not do anything to raise the old-age pension during their régime when the cost of living rose 40 per cent.?
§ Mr. DoddsCan the right hon. Gentleman explain why it is that all the Conservative newspapers are agitating that the increase should take place and that it is overdue, if, as he says, the position is better than it has ever been before?
§ Mr. PeakeIt is true to say that not only are the assistance scales giving a better standard of living than at any time in the six years ending 1952, but also that the insurance pension itself has a higher value today than it had in the last year of Socialist rule.
§ Mr. JayIs the calculation which the Minister has just made in relation to the real value of assistance and pensions based upon the cost-of-living index or upon the food prices index?
§ Mr. Speakerrose—
§ Miss BurtonWith great respect, Mr. Speaker, is it not usually your kindness to allow a Member to ask a second supplementary question when two of his own Questions have been answered together? I have only had one supplementary question.
§ Mr. SpeakerIt depends upon the length of the first supplementary question.
§ 14. Mr. Hamiltonasked the Minister of Pensions and National Insurance the total number of retirement and contributory old-age pensioners in Scotland in each of the last four years; and how many in each year were in receipt of National Assistance.
§ Mr. PeakeAs the reply contains a number of figures, I will, with permission, circulate a table in the OFFICIAL REPORT.
§ Mr. HamiltonCan the Minister say whether the percentage of old-age pensioners now drawing National Assistance is increasing, as compared with the comparable figures a year ago?
§ Mr. PeakeI should have to do a great deal of arithmetic in my head in order to work out that sum but I think it will be found that the percentage of pensioners seeking assistance in Scotland is below that of the average for the United Kingdom.
§ Mr. HamiltonIs it on the increase?
§ Following is the table:
| SCOTLAND | (Thousands) | ||
| Date | Retirement and Contributory Old Age Pensioners | National Assistance Grants paid in supplementation of such pensions | |
| December, 1950 | … | 393 | 51 |
| December, 1951 | … | 389 | 59 |
| December, 1952 | … | 391 | 66 |
| December, 1953 | … | 399 | 73 |
§ In some cases the National Assistance grant covers the needs of a household containing more than one pensioner.
§ 21. Mr. Jayasked the Minister of Pensions and National Insurance to give an assurance that the retirement pension will be raised before Christmas Day, 1954.
§ 37. Mr. G. Thomasasked the Minister of Pensions and National Insurance how soon after he has been able to state the Government's decision on the amount of increase of pensions it will be practicable to implement the decision by increased payment to pensioners.
§ 40. Mr. Rossasked the Minister of Pensions and National Insurance if he will introduce the necessary legislation to ensure that the retirement pensioners have their promised increase by Christmas, 1954.
§ 43. Mr. Hamiltonasked the Minister of Pensions and National Insurance whether his promised statement on increases in retirement pensions will be made before the end of the present Parliamentary Session; and what is the earliest date on which such increases are expected to come into operation.
§ Mr. PeakeI would remind hon. Members that what we are engaged on is the Quinquennial Review of the National Insurance scheme, which is being carried out in accordance with Sections 39 and 40 of the National Insurance Act, 1946 This 6 is a big operation, and we require for the purpose a report from the Government Actuary. Steps have been taken to make this available considerably earlier than might reasonably have been expected so as to enable me to make my promised announcement before Christmas. But, as hon. Members are aware, legislation is needed before benefits can be altered, and even when the necessary legislation has been passed, there is a lot of work to be done before new rates can be brought into force. I have already undertaken that no time will be lost in carrying through this operation, but further than that I cannot go at present.
§ Mr. JayDoes not the Minister realise even now that, if he were to introduce a very short and simple Bill giving the necessary increase, it would have the support of almost the whole House and would be passed very quickly?
§ Mr. PeakeI am sure that the right hon. Gentleman appreciates that I am bound by the terms of the Statute which he and his right hon. and hon. Friends passed in 1946. This is the Quinquennial Review. The first stage is the report by the Government Actuary, which we expect very shortly. That has to be presented to the Treasury and laid before the House. The stage after that is that the Minister of Pensions and National Insurance is obliged, by statute, then to make his review of benefits and contributions.
§ Mr. JayAlthough the Minister is bound to hold this review, is he not perfectly at liberty to increase the pensions now?
§ Mr. G. ThomasIs not the Minister aware that my right hon. Friend expressed the feeling of all of us when he indicated that the Minister need not wait for this report? Is he not aware that he could give an increase tomorrow to the pensioners, if he so wished, without waiting for the report, and that there would be no opposition from this side of the House?
§ Mr. PeakeI think that the pensioners themselves know that in 1951, when a much smaller operation, involving only the old-age pensioners and not the war disability pensioners or the sick or the unemployed, was embarked upon by right hon. Gentlemen opposite, 5½ months elapsed that year between the announcement of policy and the date of operation.
§ Mr. RossSurely, in reply to my right hon. Friend the Member for East Stirlingshire (Mr. Woodburn) on Question 20, when the Minister said that my right hon. Friend would be satisfied with the proposals when he saw them, the Minister implied that he already had the proposal. If that is the case and he wants to raise these pensions, surely the Minister could do it with the help of this House before Christmas?
§ Mr. PeakeI have referred to the time-table of 1951. I am confident that, in what is going to be the biggest and boldest operation ever undertaken in this pensions scheme, I can improve on the Socialist timing.
§ Mr. GowerIs my right hon. Friend aware that decent-thinking people of all political parties are most anxious that this increase should be the maximum the country can afford and should be introduced as quickly as possible? Is he further aware that decent opinion is nauseated by the attempts being made by some people to make political capital out of the hardships of the old people?
§ Mr. HamiltonIf the Minister cannot guarantee that the old-age pensioners will get an increase before Christmas, will he give a specific assurance that they will get it before next June?
§ Mr. PeakeUntil I am in a position to make the statement of policy, I cannot add anything to what I have said.
§ 26. Mr. Blenkinsopasked the Minister of Pensions and National Insurance what proportion of retirement pensioners and non-contributory old-age pensioners are now estimated to be in receipt of supplementary allowances.
§ Mr. PeakeJust over one-quarter of retirement pensioners and one-half of non-contributory pensioners.
§ Mr. BlenkinsopIs the Minister not aware that, if dependants are added, this must mean something over one-third? Does not this add very strongly to the argument that immediate action should be taken to help them?
§ Mr. PeakeAs I have said in answering previous Questions, the numbers on assistance are, I am glad to say, becoming stabilised.
§ 28. Mr. G. Thomasasked the Minister of Pensions and National Insurance what proportion of the present National Insurance contribution is taken for retirement pensions; and what is the cost of the non-contributory pensions and the cost of the National Assistance for retirement pensioners.
§ Mr. PeakeNearly half of the total contributions for National Insurance benefits is for retirement pensions. The estimated cost of non-contributory pensions is about £18 ¾ million a year at present, and the estimated cost of National Assistance allowances for retirement pensioners is about £39 million a year.
§ 31. Dr. Kingasked the Minister of Pensions and National Insurance what would be the cost of raising the basic rate of pensions to its 1946 value for the rest of the present financial year.
§ Dr. KingAs the Minister must raise old-age pensions in the next Budget at latest, and we now know the amount involved, will he not ask the Chancellor of the Exchequer for the £20 million, or come to the House, when both sides of the House will give him the money, so that the old-age pensioners may face the winter with a little more confidence?
§ 32. Mr. Houghtonasked the Minister of Pensions and National Insurance what period elapsed between the date of the passing of the Act authorising the last increase in retirement pensions and the date on which payment of the higher pensions began.
§ Mr. PeakeThe Royal Assent was given to the Family Allowances and National Insurance Act, 1952, which gave effect to the increases announced on 8th April, 1952, on 26th June, 1952, and the appointed day for the higher rates of retirement pension was 29th September, 1952.
§ Mr. HoughtonBy how much does the right hon. Gentleman expect to shorten that period on the next occasion? Has he formed any estimate of the total time 9 to be taken by legislation and administration, and can he remove the growing fear that the pension increases will not be effective until October of next year?
§ Mr. PeakeThe time taken in 1952 was very similar to the time taken by the Government which the hon. Gentleman supported in 1951. I am not sure if the hon. Gentleman was in his place when I gave the assurance—and if I did not give it, I meant to give it—that I confidently hope to knock something off the time-table taken by his own Government.
§ Mr. WadeIs the Minister aware that there is widespread misunderstanding over the distinction in the date when he may make the announcement, the date when legislation may be introduced and the date when it may take effect, and in order not to raise false hopes, will he be more explicit as to the date when old-age pensioners may expect an increase in the rates of pension?
§ Mr. PeakeI am afraid that I cannot add anything to what I have said, except refer hon. Members to the previous timetables and say that I hope we can improve on them this time.
§ Viscount HinchingbrookeWill my right hon. Friend bear in mind that party political capital made by the Opposition during the passage of the Bill will greatly lengthen the time before pensioners can get increased pensions?
§ Mr. ChetwyndAs the Minister seems to know what he has in mind about this increase, why cannot he be more specific in giving us a date, and is he aware that he is laying himself open to the charge that he may be delaying this until the next General Election?
§ Mr. PeakeThat hardly arises as a supplementary question on a Question concerned only with the time-table of 1952.
§ Mr. H. MorrisonCan the right hon. Gentleman say whether this persistent refusal to reveal dates is because he is afraid of revealing the date of the next General Election?
§ Mr. PeakeNo, Sir. I can assure the right hon. Gentleman that, in our case, I am following the procedure laid down by statute which his Government passed 10 in 1946, and this is quite a different operation from the one in which he participated in 1951.
§ 39. Lieut.-Colonel Liptonasked the Minister of Pensions and National Insurance the latest total of pensioners in the London County Council area whose pensions are supplemented by National Assistance.
§ Mr. PeakeThe estimated number of retirement, contributory and non-contributory old-age pensioners in the London County Council area who were receiving regular weekly National Assistance grants at the end of September, 1954, was just over 100,000.
§ Lieut.-Colonel LiptonIs this not a deplorable increase over the corresponding figures for last year? Does it not show that even in London, which is one of the most prosperous parts of the country, poverty and destitution prevail?
§ Mr. PeakeI am sure the hon. and gallant Member will be pleased to know that there has been a slight decrease in the numbers drawing assistance since June of this year.
§ Lieut.-Colonel LiptonCompare like with like.
§ 41. Mr. Rossasked the Minister of Pensions and National Insurance the actual increase per month of retirement pensioners on National Assistance in the last available six months.
§ Mr. PeakeMonthly figures are not available, but between March and September they increased by about 20,000.
§ Mr. RossDespite the satisfaction expressed by the Minister about a general decrease in the number of retirement pensioners receiving National Assistance, does not this reply show that the number is still increasing? Surely these numbers speak for themselves and underline the complete inadequacy of the retirement pension?
§ Mr. PeakeThe increase is very slight. It is very slight indeed compared with the rise which took place month by month and year by year under the Socialist Government.
§ 42. Lieut.-Colonel Liptonasked the Minister of Pensions and National Insurance if he will now give an assurance that 11 old-age pensioners in receipt of supplementary assistance grants will not have such grants reduced by the whole amount of the promised increase in pensions.
§ Mr. PeakeI cannot give such an assurance. In assessing need, the National Assistance Board is bound to take National Insurance pensions into account in full.
§ Lieut.-Colonel LiptonIs the Minister aware that the proposed increase, about which he has been talking so much, will be regarded by all those pensioners who have to rely upon National Assistance as a cruel hoax if he gives it with one hand and takes the whole lot back with the other hand?
§ Mr. PeakeThe National Insurance pensions were deliberately omitted from the schedule of disregards contained in the National Assistance Act, 1948, because our general objective is to make pensions payable without a means test the main provision against old age.