HC Deb 26 June 1967 vol 749 cc59-60
6. Mr. Gwilym Roberts

asked the Minister of Social Security what plans she now has for relating pensions to the index of average earnings of all employees calculated by the Ministry of Labour.

Miss Herbison

Changes in the level of earnings are one of several factors taken into account in determining the level of pensions. The subject falls to be considered as part of our review of social security, and I cannot anticipate the outcome.

Mr. Roberts

Is my right hon. Friend aware that the help she is giving to the pensioners has kindled a flame not only in my heart but in the hearts of other people all over the country? Will she now assure the House that in any arrangement or system pensioners should be given at least a fair share of the increased growth we all expect during the next few years?

Miss Herbison

I hope that that will certainly be the policy of the Government. My hon. Friend will possibly be aware that the increase in March, 1965, and the proposed increase are both more than would be needed to keep the pension in line with average earnings.

Mr. Ben Whitaker

Could not my right hon. Friend devise an index for the cost of living that would be related to the average pensioner's budget? Is she aware that whereas the cost of living has risen by some 8 per cent. since the last increase in pensions, it has risen 36 per cent. since the last increase in family allowances was given? Can she say when she expects to implement Clause 5?

Miss Herbison

The last part of my hon. Friend's supplementary question does not arise from the Question on the Order Paper, but if he cares to put down a Question I shall be very happy to answer it. It would not be easy to devise a special index for old people. I prefer old people to have their share of any increase in wealth, and that is what we have done with these two increases.