HC Deb 12 May 1964 vol 695 cc201-2
9. Mrs. Castle

asked the Chancellor of the Exchequer whether he will review public service pensions in order to make the necessary adjustments to meet the increase in the cost of living since the last review in the Pensions (Increase) Act of 1962.

Mr. Green

I have nothing to add to the replies which my right hon. Friend the Chief Secretary gave to my hon. Friend the Member for Tynemouth (Dame Irene Ward) on 5th May.

Mrs. Castle

Is the Financial Secretary aware that the cost of living has risen by 2½ per cent. since the last increase was put on these pensions? Does not he agree that the least we can do for former members of the police force, or other public service pensioners, is to see that there is a regular annual review of their pensions so that they do not suffer an actual reduction in their standard of living?

Mr. Green

These are very difficult matters and they are constantly under review, as the hon. Lady knows. It is true, of course, that the increase in the last Pensions (Increase) Act very substantially exceeds any subsequent increase in the cost of living.

Dame Irene Ward

In view of the Answer I was given on the last occasion, can my hon. Friend tell me whether he has now considered the problem of the increase in the price of coal? The problem is that these people do not have a place to store coal in the summer, and will therefore have to pay highly increased winter prices. What is the answer to that?

Mr. Green

I am afraid that I cannot give my hon. Friend the answer off the cuff because, in fact, my right hon. Friend is considering the matter now.

Mr. Callaghan

Does not the Financial Secretary think that it is time that the Government took into account the growing arrangements existing in the public services and elsewhere for a regular review of remuneration? Is he aware that there is a strong and growing feeling that there should be a similar arrangement for a regular review of the pensions of public servants? Would he please undertake to examine that possibility, and give the House a report?

Mr. Green

This subject has been discussed on previous occasions in this House, of course, and I do not think that I can add to the previous answers that have been given. Apart from anything else, hon. Members on both sides make quite sure that this kind of issue does not escape notice.

Mr. Callaghan

Does not the hon. Gentleman realise that there is a growing feeling that hon. Members should not have to importune Ministers on this sort of matter every time? While the hon. Gentleman says that there have been discussions in the past, may I ask him the specific question whether the Government are going into the matter now to see whether there can be a regular review of public service pensions at fixed intervals as in the case of other public service remuneration?

Mr. Green

This has been debated many times in the past. No entirely satisfactory form of review machinery has yet been devised, as my right hon. Friend the Chief Secretary to the Treasury has already informed the House. It does not follow that because one has a regular reviewing machinery pensioners are necessarily better off. It depends upon the terms under which we have that review, and this is one of the matters which are being considered.