LUMP SUM PAYMENTS TO PENSIONERS (Hansard, 6 November 1974)

§ Mr. Robert Boscawen (Wells)
We do not intend to delay the Committee long on this stage of the Bill. We realise that, by and large, it commends itself to all hon. Members on both sides.
We welcome the fact that hon. Gentlemen opposite have accepted the measures that, by and large, we introduced two years ago and have now carried them further. However, it is important to get the Bill right. In previous years hon. Members received a considerable amount of correspondence about anomalies in the legislation. It appears that the indignation and concern that arise from the 1105 anomalies is in inverse proportion to the amount of the payment that people receive. This Bill is building on experience of the past two years. It widens the basis for giving help to people above retirement age to a large number of people who, in the main, are on long-term benefits. If it is to be done at all, I am sure that this is the right way to do it, because these are the people most deserving of help.
None of this can alter the fact that the credit for starting this measure goes undoubtedly to my right hon. Friend the Member for Leeds, North-East (Sir K. Joseph), who introduced it, and to my hon. Friend the Member for Somerset, North (Mr. Dean), who did so much to get it started and to smooth out many of the anomalies in the first two years of its introduction. Inflation has since then become much worse, and prices are in danger of getting out of control altogether, and it is the pensioners who suffer most. However, the Christmas bonus goes some way to restoring the balance by easing in a small way the lot of pensioners, and brings much happiness to many people who otherwise would not receive it.
The first question that I should like to ask the Minister is whether he will ensure that everyone entitled to receive the bonus, including people, particularly war pensioners and those on industrial injury benefits, who receive their pensions by means of Giro cheque, quarterly or monthly through the post, receive it by Christmas. This is an important matter, and I hope that the hon. Gentleman will ensure that the small number of people who do not obtain their pension from the Post Office receive it at the right time.
My second question has already been raised by the hon. Member for Goole (Dr. Marshall). The former Opposition made great play of the fact that a considerable number of people became entitled to a Christmas bonus between the period of the qualifying week and Christmas Day. We have had a flimsy explanation from the hon. Member for Rotherham (Mr. O'Malley), who has just replied to the Second Reading debate and who supported the hon. Member for Goole in last year's debate. I should have thought that he would have taken the 1106 trouble to do a little more homework than he has done. He should look into the matter again. I hope that means will be found by which it will be possible to pay the bonus to people who qualify before Christmas Day.
I turn to the question of eligibility, which is dealt with in Clauses 1 and 2. The Department has been advised to base eligibility for the benefits on the receipt of a qualifying benefit. But such a qualification in the case of women who are over 60 and men who are over 65 years of age is not necessarily the sole criterion of need.
Some people who do not qualify for a State retirement pension and are not in receipt of long-term supplementary benefit are very poor indeed. Unfortunately, they do not have a sufficient contributory record, more often than not through no fault of their own. Some of them are divorced women who were unaware that their husbands had not been contributing fully. Some of them worked abroad, no doubt doing good for this country but in countries with which we do not have reciprocal arrangements. Others, particularly unmarried daughters of elderly parents, do not have the means to pay contributions before reaching retirement age. Such people are left out of the bonus.
5.15 p.m.
Surely the purpose of the Bill is to put some small extra purchasing power into the pockets of people for whom there is likely to be no other benefit. Would it not be a simpler and fairer procedure if all those of pensionable age automatically received the bonus irrespective of their contributory record, provided they could satisfy a qualification of residence for a definite period?
We should also like to see younger widows included in the Christmas benefit. May I say in passing that we have come a long way since the 10s-widow days, because now people are receiving a £10 bonus for Christmas. It was not until my right hon. Friend the Member for Leeds, North-East introduced the sliding pension for all widows over the age of 40 without children that notice was taken of these people. We therefore owe my right hon. Friend a debt in retrospect for making it possible for these people to be included in the Bill.
1107 I should be grateful if the Under-Secretary of State would explain why war pensioners do not qualify earlier than the age of 70 in the case of men and 65 in the case of women.

§ The Chairman
As I read Clause 1, it is concerned only with the £10 payment. I hesitated to interrupt the hon. Gentleman, but the substance of Clause 1 concerns the £10 payment.

§ Mr. Boscawen
I agree that this matter arises on Clause 2, Mr. Thomas, and I shall raise it when we reach Clause 2, when I shall ask for a further group of anomalies to be considered.
I should be grateful if the Under-Secretary of State would say why all retirement pensioners, when they reach the age of 60 in the case of women and 65 in the case of men, should not be eligible for the bonus.

§ The Under-Secretary of State for Health and Social Security (Mr. Alec Jones)
I should like to try to deal with the complicated points raised by the hon. Member for Wells (Mr. Boscawen). I am in some difficulty, since that means transgressing into Clause 2. I am sure that you, Mr. Thomas, will either call me to order or close your eyes to it as the situation demands.
The hon. Member and I have sat on many Committees dealing with these matters. Whenever attempts have been made by either party to draw a line in dealing with this bonus, some people have always been left outside. That is happening this time to the categories he mentioned. When the Conservative Government introduced this scheme, it was rough and ready. Over the three years since, we have succeeded in refining and improving it. We have not achieved perfection, but we have gone a considerable way this time by including an extra 1 million people. Although we have not been able to include all the categories that he has described, we have taken to heart the criticisms levelled in the past from both sides of the House. On some future occasion I hope that we can deal with this type of case.
When the Secretary of State said that she hoped that all payments would be made before Christmas she meant that it was the Government's intention that 1108 all those entitled to the payment should receive it. She used that form of words because she was allowing for the fact that some people returning from abroad, for instance, would not be able to receive it. Whether they receive it through the order book or by Giro cheque, arrangements are being made to ensure that there will be no avoidable delay in paying this money.
We have done as much as possible in the present circumstances. The extension of the payment to another million people is a reasonable step. As for the timing, we are anxious that all those who qualify will receive the payment. That is why we were anxious to ensure that there would be no difficulties in Northern Ireland.