§ 39. Mr. Ridsdaleasked the Minister of Social Security whether she will make a further statement on the proposals to establish a cost of living index for retirement pensioners, and the effect it will have on present benefit rates.
§ Mrs. HartAdditional information about pensioner households will be welcome but, as the Cost of Living Advisory Committee itself noted in its report, prices are only one of several factors influencing the level of benefits. Over the last few years the growth in the level of the National Insurance retirement pension has so far exceeded the increase in the Retail Prices Index that the picture is not significantly altered by the Index 1033 figures for pensioner households calculated for the Advisory Committee.
§ Mr. RidsdaleWhen benefits were last raised, did the Minister take into consideration that retirement pensioners were being hit more than any other section by the cost of living?
§ Mrs. HartPerhaps I can amplify a little what I have just said. When benefits have been raised by this Government, not only has a rise in prices been taken into account but an effort has been made to increase the real value of pensions. So successful have those efforts been that, far from merely increasing the benefits in terms of rises in prices, we have actually increased the real value of pensions and other benefits by 20 per cent. between October, 1964 and September, 1967.