HC Deb 06 February 1967 vol 740 cc1081-2
2. Mr. Winnick

asked the Minister of Social Security when the increase in the basic old-age pension will be given.

The Minister of Social Security (Miss Margaret Herbison)

I would remind my hon. Friend that the value of the present rates of National Insurance retirement pensions is appreciably greater in real terms than that of any previous rates, and that we have made important increases and improvements under the supplementary pensions scheme which started only just over two months ago.

Mr. Winnick

Although many pensioners have been helped by the social security minimum, does not my right hon. Friend agree that there is still a strong case for some increase being made in the basic old-age pension in the near future? Would she inform the Chancellor of the Exchequer that such increases should not be stopped because of any pressure from international financial sources?

Miss Herbison

In considering when an increase is due, all the facets must be considered. The rates introduced in 1965 were 18 per cent. higher than the previous rates. There has been an increase of 8 per cent. in the Index of Retail Prices. Therefore, I think that the Government can take some credit, first for granting the biggest increase ever, and, secondly, for their success in holding down prices, which is the most important thing for old people.

Miss Pike

Nevertheless, will not the Minister agree that the pension for the single person has fallen by 6s. ld. and for married couples by 9s. 11d., due to the increase in the cost of living? The cost of living is still increasing. She must regard this very seriously, because this is a record for the speed at which the value of the pension has been falling.

Miss Herbison

I assure the hon. Lady that I regard it as a serious matter. But, even today, the pension is higher than it ever was in purchasing value during the whole 13 years of the Tory Government.