§ As we made clear last year, we propose to return to the annual cycle of upratings now that inflation is being brought under control. We shall therefore raise social security benefits in November. We also confirmed in the recent White Paper on Public Expenditure our continuing commitment to improve pensions and other long-term benefits in line with the movement of earnings.
§ Now that the rate of inflation is coming down, I believe that an increase of £3 in the rate of pension for a married couple would be more than enough to match the actual and likely movement in earnings in the 12 months to November; an uprating on this basis would require additional provision of around £360 million in the current financial year.
270§ But I have listened carefully to representations from those who have urged me to go beyond this. In the light of these representations I have decided to raise the married rate by £3.30 to £24.50. For single pensioners the increase will be £2 above the present rate, giving a new rate of £15.30 a week. These increases of over 15 per cent. will cost about £400 million in 1976–77 and about £1,070 million in a full year.
§ There will also be increases in short-term benefits which my right hon. Friend the Secretary of State for Social Services will be announcing tomorrow. Altogether the increases in long-term and short-term benefits will provide an additional sum of around £510 million in 1976–77 and over £1,360 million in a full year.