HC Deb 01 February 1972 vol 830 cc218-20
5. Mr. Duffy

asked the Secretary of State for Social Services if he is satisfied that the October increase to people living on supplementary benefits has given them a compensatory increase; and if he will make a statement.

The Under-Secretary of State for Health and Social Security (Mr. Paul Dean)

Yes, Sir. The increase in supplementary benefit rates in September, 1971, more than restored the purchasing power of the previous rates at the time of their introduction in November, 1970.

Mr. Duffy

Is the Minister aware that if the value of the single person's supplementary allowance is plotted against the average industrial wage, increases granted over the past two years have left the recipients poorer than at any time since supplementary benefits were introduced in 1966? If that is not bad enough, old-age pensioners drawing supplementary benefits have part of their pension increase clawed back by the S.B.C.

Mr. Dean

That particular point will be dealt with completely as a result of the annual review of pensions announced by my right hon. Friend before Chirstmas.

On the first point, the purchasing power of the pension has been more than restored, and for those supplementary pensioners who are over 80 there was an additional benefit over and above the scale rates.

Mr. Raphael Tuck

Is the Minister aware that those on supplementary benefits and old-age pensions cannot possibly live on the miserable pittance allowed them by the State, because of the abnormal rise in prices fostered by the Government? It is no use whatever waiting until October, when some of them will probably have died from hypothermia. Will he do the decent thing and peg the allowance to the cost of living so that it rises when the cost of living rises?

Mr. Dean

I do not think the hon. Gentleman helps by making these emotive remarks. The increase provided last September more than restored the purchasing power of the pension. None the less, my right hon. Friend is very conscious of the needs of supplementary pensioners, and we are doing our utmost to improve the scheme all the time.

Mr. Boscawen

When will my hon. Friend be able to announce an increase in the additional coal allowance to the supplementary benefit?

Mr. Dean

A large number of those who are eligible for additional special allowances are now getting them. The scheme has been improved. Each allowance book is being looked at on review to see whether more people might be eligible for these special additions.