HC Deb 02 December 1963 vol 685 cc766-7
16. Dr. Bray

asked the Minister of Pensions and National Insurance whether he will now announce a planned rate of increase in pensions.

Mr. Wood

I think it best that we should continue to take into account all the circumstances that are relevant, including prices, before putting specific proposals to Parliament

Dr. Bray

Does not the right hon. Gentleman feel that the new attitude to forward planning of Government expenditure—taken many years ahead—plus the accepted need for a policy of distribution of income, means that if we do not earmark an increasing share of the national income for pensioners we shall always be in the position of not being able to afford the pension increases which we know are needed?

Mr. Wood

I think that the method suggested by the hon. Gentleman would tend to introduce a certain unwelcome rigidity into the development of pensions. If, in the past, we had tried to link increases in pensions to some economic index, they would almost certainly be lower than they are. If they had been linked, for instance, with the retail price index they would be 43s. 6d. and if linked to average earnings they would be 58s. 5d. As it is, however, they are 67s. 6d.

Mr. Mitchison

Does not the right hon. Gentleman have some sort of index of the cost of living for old-age pensioners, something more particular than the usual retail price index? If so, will he make it available to hon. Members or publish it?

Mr. Wood

The question put by the hon. Member for Middlesbrough, West (Dr. Bray) was whether we would project our minds forward and announce a planned rate of future increases of pensions. I think what he had in mind was some means of assessing what prices and other circumstances will be in the future. There is no mechanism at the moment that will do that.