§ 7. Mr. G. Jegerasked the Minister of Pensions and National Insurance why he now refuses to commute pensions at the request of war-disabled pensioners who need capital sums.
§ The Joint Parliamentary Secretary to the Ministry of Pensions and National Insurance (Brigadier J. G. Smyth)The practice of allowing commutation was suspended in 1939. Since then, successive Ministers of Pensions decided against reviving it on the ground that experience had shown that commutation was not, in 670 general, in the pensioners' best interests. My right hon. Friend agrees with this view.
§ Mr. JegerDoes not the hon. and gallant Member think that, instead of a hard-and-fast line being drawn in these cases, it might be to the advantage of the pensioner if he were given a lump sum when, for instance, he is engaged in a profitable business that requires a little more capital to develop? Will he undertake to examine each case on its merits before giving a definite ruling about every one?
§ Brigadier SmythIt is very difficult to discriminate between one case and another. All our experience over the last 15 years points to the fact that it is not in the true interests of the pensioner to allow him to commute his pension. I have seen a lot of tragedies where a man has spent his pension, is still disabled, and has come along to ask us what we can do to help him.
Air Commodore HarveyDoes not my hon. and gallant Friend consider that in certain cases, where a man is in business on his own account, it might be to his advantage if he had up to 20 per cent. of his pension commuted? In special cases, could not that possibility be considered?
§ Brigadier SmythI have considered a great many cases, but it is very difficult to agree to commutation in one case and refuse it in another. All our experience is to the effect that it is a mistake from the pensioner's point of view, and we must put the pensioner first.