§ 17. Mr. Scottasked the Minister of Pensions and National Insurance what is the value in real terms of the retirement pension to the latest convenient date compared with the value in real terms at the date of latest increase in March, 1965; and what she estimates would need to be the present value of the retirement pension to keep pace with the rise in average earnings since March, 1965.
§ Mr. PentlandAt current prices the single pension is worth about 5s. less than in March, 1965, and the pension for a couple is worth about 8s. 2d. less. An increase corresponding to the rise in earnings would be about 5s. 8d. single and 9s. 2d. for a couple.
§ Mr. ScottDoes not the hon. Gentleman remember the Labour Party's pledge to keep pensions in line with rising earnings? Is it not about time that the gap which has become so wide was filled?
§ Mr. PentlandThe Government are watching the position very carefully. The value of the pension in real terms is at a much higher level than at any time under the party opposite.
§ Miss PikeIs it the Government's intention to keep the pension, if they can, in line with rising prices or to follow the pattern of the previous 13 years and keep it in line with rising earnings and standards?
§ Mr. PentlandThere is a Question on the Order Paper about rising prices and their relevance to pensions. The value of the 67s. 6d. which was the single rate introduced by the Tory Party in May, 1963, would now be equivalent to 75s. 11d. which means that the 80s. rate we introduced is still worth over 4s. more, while the 109s. rate which the Tory Party introduced in their last pensions increase Measure in 1963 would now be equivalent to 122s. 6d., so the present rate of 130s. which we introduced in March, 1965, is still worth 7s. 6d. more in real terms—and I must emphasise "real terms".