§ 23. Mr. Thomas Coxasked the Chancellor of the Exchequer what plans he has to meet representatives of retired pensioners' organisations to discuss his decision to float the £ sterling, in view of its effect on the purchasing power of their incomes.
§ Mr. NottMy right hon. Friend has at present no plans for such a meeting. Pensions are being raised by 12½ per cent. in October and the effect of floating on the cost of living is likely to be small.
§ Mr. CoxSurely the Chancellor has an obligation to retired people. The decision that has been taken by his Department to float the £ will have a serious effect on price increases. These will come even before the pension increase is paid, so that much of the increase will be meaningless. Should not the Chancellor as a matter of urgency seek a meeting with pensioners' representatives and then see the Prime Minister and suggest that there should be an urgent review of pensions?
§ Mr. NottThe present Government have introduced an annual review of pensions, which is a substantial advance on the previous position, and thehon. Gentleman should recognise this fact. Over the two years to June, 1972, pensions have increased by 32½ per cent. whereas retail prices have increased by 17 per cent., so the real value of pensions has been substantially increased. I am happy to meet representatives of the pensioners. The Government fully accept their obligation to these people.
§ Mr. MartenIf it is the right economic policy to have a floating £, on what criteria of economic judgment can it be said at this point that it must be fixed by 1st January?
§ Mr. NottI do not think this is strictly related to old-age pensions; it arises on a later Question. My hon. Friend is well aware of the policy to which my right hon. Friend the Chancellor has announced with regard to parities. I do not want to repeat it now.