HC Deb 09 February 1970 vol 795 cc893-4
22. Mr. Kenneth Baker

asked the Secretary of State for Social Services how the real value of pensions compares with their value in October, 1967.

Mr. Ennals

The increases last November, like those of October, 1967, gave pensions a real value 20 per cent. above those of the pensions in payment in October, 1964. As measured by changes in the Index of Retail Prices, their value has since been diminished by about 1 per cent.

Mr. Baker

As I understand that reply, the Minister said that the pension since October, 1967, has fallen in purchasing power by 1 per cent. Have the Government any plans, prior to May, 1971, for restoring the purchasing power of the pension to what it was in October, 1967?

Mr. Ennals

There is not only the question of when will be the next increase in national insurance benefits, about which I can make no statement, but also the question of supplementary benefits, which, of course, go to those who are in particular need. The Government, naturally, take into careful consideration any changes in costs, in order to determine both when and at what level there will be a further increase in supplementary benefits.

Mr. Heffer

Would my hon. Friend accept the fact that, whilst one can ignore the humbug and hypocrisy which are raised on the other side of the House by this question, there is a real need to have a good look at those on supplementaries and on the old-age pension when there is an increase in the price of such things as coal, so as to protect pensioners against those sorts of increases in costs?

Mr. Ennals

I do not know that it is possible to ignore the humbug on the other side: I find it a constant source of irritation. Nevertheless, we must expect it. Of course I recognise that there are these needs. This was the reason why the level of supplementary benefits was increased in November. As for the question of coal, for instance, my hon. Friend will be aware that where the supplementary pensioner needs extra fuel, because of ill health or a damp house, and this need is not covered by the pension, the supplementary benefit can be increased.

Sir R. Cary

Is the hon. Gentleman absolutely certain about his diminished figure of 1 per cent.? The costs of living are running higher than that. That is a grossly inaccurate figure, as the decrease is much, much more than that.

Mr. Ennals

Only very marginally. While the Index of Retail Prices was 119.7 in October, 1967, and 134.4 in December, 1969, an increase of 12.3 per cent., the November, 1969, pension increase represented an increase of 11.1 per cent. for a single person over that introduced in October, 1967. So it is just very marginally above 1 per cent.