HC Deb 02 December 1963 vol 685 cc750-1
3. Mr. A. Lewis

asked the Minister of Pensions and National Insurance whether he is aware that since the last adjustment in welfare and retirement payments food prices have increased, rents have risen, and the purchasing power of the £sterling has further depreciated; and whether he will introduce legislation to enable all National Insurance benefits to be doubled for the Christmas week to assist those on limited incomes to enjoy the festive season without increasing the inflationary spiral.

24. Mr. Manuel

asked the Minister of Pensions and National Insurance if he will make, the week before Christmas, an additional payment equivalent to one week's pension to all retired men and women who are in receipt of a contributory National Insurance pension or a non-contributory pension.

Mr. Wood

Since the retirement pension improvements in May, the retail prices index for all items has moved very slightly downwards. Any argument based on (he movement of prices is therefore misconceived. In any event, payments of the kind mentioned have always been regarded as quite inappropriate to our system of social provision.

Mr. Lewis

The Minister may quote general prices, but is he not aware of the fact that the cost of food, rent, and the basic commodities which old-age pensioners and others mentioned in the Question have to meet has risen drastically? Does he think it fair that these sort of people should not receive increases while such people as judges should get a 50 per cent, increase and such people as the chairmen of public boards should get a 20 per cent, increase? If, during the period of the election, the Government propose to make certain hand-outs, should not the people referred to in the Question be the first to receive the benefit?

Mr. Wood

I read HANSARD, and I am aware of the hon. Member's researches. If I may offer him a little advice, I would point out that it would be better if his researches were less selective, and if they produced the whole picture. In any event, it is important to remember that, rather than give bonuses in Christmas week, a few months ago the Government took steps to see that pension rates, all through the year, were put at a higher real value than they have ever been.

Mr. Manuel

Will the right hon. Gentleman recognise the very great happiness that he could bring to the lives of retirement pensioners if he gave this additional week's increase? Is he aware that it would enable these old people to buy gifts for their grandchildren, and such like, and so enter into the festive spirit at Christmas?

Mr. Wood

I think that the Government were right, rather than giving a week's increase, to take the decision they did and give an increase over the whole year.

Miss Herbison

Surely the right hon. Gentleman is aware that the gap between what the old-age pensioner or the retired person receives today and the average wage is much bigger than it was even in 1938, before the war? Is not this really proof that old-age pensioners, visà-vis wage earners, are having a very thin time?

Mr. Wood

No, Sir. The proportion which the retirement pension now bears to average earnings is very much higher than it was when the Conservative Party came to office.