HC Deb 28 November 1966 vol 737 cc13-4
18. Mr. Ridsdale

asked the Minister of Social Security whether she will make a statement on the effect of the entry into the European Economic Community on pensioners; and what action the Government propose to take in view of the estimated rise in the price of food which will result from entry.

Miss Herbison

Entry into the European Economic Community would not affect pension rights. The Government keep a continuous watch on the level of pensions in relation to all relevant factors, of which food prices is only one.

Mr. Ridsdale

As pensioners' living standards are falling very considerably, besides those of the rest of industry, will the Minister assure the House that pensioners will not suffer because of the 14 per cent. rise in the cost of food due to entry into the Common Market?

Miss Herbison

The first part of the hon. Member's supplementary question is quite wrong. In real terms the pensioners today still have more money than they had in 1964 or have had at any earlier time. As for the other matters, of course we keep under review the whole time anything which will affect the standard of living of the pensioner.

Mr. Freeson

Will my right hon. Friend bear in mind that we cannot go on for ever appreciating the increase in benefits introduced in March, 1965, and that something should be done to make sure that the pension retains its value for the people for whom we introduced that benefit in the spring of last year?

Miss Herbison

I could understand my hon. Friend's supplementary question if the pension rate today were less in real terms than just before it was raised in March of last year, but that just is not the case. [HON. MEMBERS: "That was a Tory standard."] It is not a Tory standard. We gave an increase last March which was very much higher than was needed in proportion to the increase in the Retail Prices Index and, moreover, higher than was needed in proportion to the increase in earnings.

Mr. Dean

Does not the right hon. Lady appreciate that her hon. Friend the Member for Willesden, East (Mr. Freeson) is really asking her to fulfil her election pledges made at the last election?

Miss Herbison

There need be no fear about that. The very first thing that the Government did was to give to the old people the biggest increase ever given in real terms. This very day those who are betting supplementary benefits, the old people, will receive payments 27 per cent. higher than when we came to power.