§ 27. Mr. Goodhewasked the Chancellor of the Exchequer if he will introduce a Public Service Pensions Increase Bill.
§ Mr. DiamondI 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. GoodhewDoes 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 1125 eroded as a result of the Chancellor's weekend activities?
§ Mr. DiamondIt 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 WardIs 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. DiamondMy 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. MacdonaldWhat 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. DiamondThis matter has been considered from time to time, but one requires a certain flexibility in action.