§ 3. Mr. Allasonasked the Minister of Social Security whether, in view of Her Majesty's Government's decision to increase Gurkha pensions, she will now increase the retirement pensions of pensioners living overseas who have had their effective pensions reduced as a result of devaluation.
§ The Joint Parliamentary Secretary to the Ministry of Social Security (Mr. Charles Loughlin)On Gurkha pensions, I would refer the. hon. Member to the reply given to his Question on 23rd January, 1968, by my hon. Friend the Under-Secretary 858 of State for Defence for the Army. National Insurance retirement pensions are designed to meet the needs of people living in the United Kingdom and they are payable in sterling even if the pensioner is living outside the United Kingdom.
§ Mr. AllasonWhile we are all delighted that the Government are at least protecting the Gurkha pensioners from the effect of devaluation, may I ask the Minister again to consider the position of British pensioners living overseas? Does he not agree that if they return to this country, they will be entitled to the pensions increases which they are not now getting and also to health benefits, and would therefore be a very much heavier charge on the Exchequer?
§ Mr. LoughlinI want to make it absolutely clear that there has been no change in the procedures for payment to pensioners living outside the United Kingdom in recent years and that this is a long-standing practice. While any question for the Gurkhas is for my hon. Friend the Under-Secretary of State for Defence for the Army, it has to be recognised that their position is not on a par with that of other pensioners, because while pensions are ordinarily expressed in sterling, the Gurkhas' situation is complicated because their pensions are expressed in Indian rupees, and there has been a double devaluation, one of Indian rupees and one of the £. It is a much more complicated matter than the hon. Gentleman suggests.