HC Deb 10 December 1956 vol 562 cc4-5
4. Mr. McKay

asked the Minister of Pensions and National Insurance what was the cost-of-living index figure on 16th November, 1954, fifteen days before it was decided pensions should be raised; what is the cost-of-living index figure now; what is the percentage increase; if he is aware that the general outlook indicates a further rise in the cost of living; and if he will consider increasing the insurance pensions.

Mr. Boyd-Carpenter

On 16th November, 1954, the Interim Retail Prices Index stood at 144.7. On 16th October, 1956, the corresponding figure was 157.5, a percentage increase of 8.8 per cent. As regards the remainder of the Question, I would refer the hon. Member to the replies which I gave on 3rd December to the hon. Member for Blackburn (Mrs. Castle) and other hon. Members, to which I have nothing to add.

Mr. McKay

Is it not correct to say that if pensions were raised it would be largely a matter of transferring money from one section of the community to another and would, therefore, have no effect on the inflationary position? If that is so, what is the Government's reason for refusing to increase pensions in order to raise the status of these poor people to something more equivalent to that of the rest of the community?

Mr. Boyd-Carpenter

If I were to deal with the hon. Gentleman's point about inflation, I am afraid that I should take a very long time indeed, but, on the figures for which he has asked, the cost of living over the period he selected has risen 8.8 per cent., as I told him, whereas the rate of pension has risen 23 per cent.

Mr. Redhead

Will the right hon. Gentleman reconsider the basis of his answer to this Question in relating it to the Index of Retail Prices? is he not aware that the Cost-of-Living Advisory Committee has made it abundantly clear that the Index of Retail Prices is not necessarily applicable to the cost of living of any particular section of the community and, furthermore, that the Index of Retail Prices definitely excludes from consideration the budgets of those who are dependent either wholly or substantially upon old-age pensions and National Assistance.

Mr. Boyd-Carpenter

That may well be so, but I was answering a Question by the hon. Member for Wallsend (Mr. McKay), which asked for that figure.