HC Deb 31 March 1955 vol 539 cc526-7
11. Mr. H. Wilson

asked the Chancellor of the Exchequer if he will instruct the Central Statistical Office, in consultation with the Ministry of Labour, to work out a cost-of-living index which measures with reasonable accuracy changes in the cost of living of old-age pensioners; and if he will publish figures showing the movement of this index over the past three years.

Mr. Maudling

The question of a separate index for old-age pensioners will no doubt be reconsidered by the Cost of Living Advisory Committee when the final results of the household budget inquiry are available. I would, however, point out that in their interim report of 26th June, 1951, the Advisory Committee expressed the opinion that there would be serious objections to the regular publication at monthly intervals of two or more official indices of retail prices covering different social, economic or regional groups.

Mr. Wilson

That was in 1951. Is the hon. Gentleman aware that since that time the spectacular increase in food prices, which have increased far more than the general cost-of-living index, makes this highly necessary? Is he aware, in particular, that in the Phillips Committee's Report there was reference to this point and regret was expressed that such an index was not available?

Mr. Maudling

Without accepting the implication in the supplementary question, I would say that this is a matter which should be considered by the Committee, which is an expert statistical committee. I am quite certain that when that Committee considers the matter it will take into account the remarks of the right hon. Member.

Mr. Jay

Is the hon. Gentleman aware that in his own National Income White Paper, published yesterday, it is said that pensioners had a smaller rise in incomes last year than the rise in prices?

Mr. Maudling

When the full rises in pensions introduced by the present Government are felt, there will be a much greater increase than the rise in the cost of living.

Mr. J. T. Price

Whilst there may be serious technical objections to publishing two separate indices of prices, is the hon. Gentleman aware that, in so far as old-age pensioners are concerned, a vast range of commodities included in the calculation of the present index are not available to them and it is quite unfair to apply an arbitrary figure of this kind to a section of the population who, through poverty, have not access to many of the things included in that range?

Mr. Maudling

That, no doubt, is the sort of consideration which will be borne in mind by the Committee, but I think the present Retail Prices Index is generally accepted by all who study it as being a very fair index for all concerned.

Mr. F. M. Bennett

Was any such index published during the lifetime of the late Government when the cost of food went up far more?

Mr. Maudling

No, Sir.

Mr. Jay

Does the hon. Gentleman deny that what I said about 1954 is perfectly correct?

Mr. Maudling

I was merely pointing out that, when considering the position of old-age pensioners. we should take into account the second rise in pensions which is now impending as a result of the activities of this Government.