HC Deb 21 November 1967 vol 754 cc1124-5
27. Mr. Goodhew

asked the Chancellor of the Exchequer if he will introduce a Public Service Pensions Increase Bill.

Mr. Diamond

I would refer the hon. Member to the Financial Secretary's speech on the Public Service and Armed Forces Pensions Commission Bill on 3rd February, 1967.—[Vol. 740, c. 985–90.]

Mr. Goodhew

Does not the right hon. Gentleman realise that the purchasing power of the pensions of public service pensioners has been eroded just as has the purchasing power of the ordinary retirement pensioner who is having an increase, and it is likely to be even more eroded as a result of the Chancellor's weekend activities?

Mr. Diamond

It will be appreciated that the increase in the ordinary retirement pension is closely relevant in this connection, since most public service pensioners are in receipt of that pension also. On the other point, the hon. Gentleman will remember that the last Act provided for increases of up to 16 per cent. and since it came into operation in January 1966, the cost of living has gone up by well under 5 per cent.

Dame Irene Ward

Is the right hon. Gentleman aware that all these people, the great majority of whom are living on small fixed incomes, will be badly hit by the Government's new policy? Did not the Chancellor of the Exchequer say that he would do something for people who would find themselves in these circumstances? Will he keep his pledge, or is it to be another pledge abandoned?

Mr. Diamond

My right hon. Friend said that the poorer sections of the community who will be hard hit—who might be hard hit—[HON. MEMBERS: "Will be very hard hit."]—might be hard hit, should be specially protected.

Mr. Macdonald

What thought is my right hon. Friend giving to introducing the concept of automatic increases in these matters, so as to do away with the need for periodic Bills?

Mr. Diamond

This matter has been considered from time to time, but one requires a certain flexibility in action.