§ 25. Mr. Tim Rentonasked the Minister for the Civil Service what recent representations he has received regarding the inflation-proofing of Civil Service pensions.
§ Mr. Charles R. MorrisI refer the hon. Member to the answer I gave the hon. Member for City of Chester (Mr. Morrison) on 29th March 1976. Since that date my Department has received a further 10 or so letters on the inflation-proofing of pensions under the Pensions (Increase) Act 1971.
§ Mr. RentonIs the Minister aware of the concern felt by many people that the inflation-proofing of Civil Service pensions, coupled with the annual increments paid to public servants, and £6 a week on top, is leading to discrimination in favour of the public sector? As pay control continues for another year this inequity will become greater. Will the Minister conduct an urgent investigation into the subject?
§ Mr. MorrisMy Department is reviewing the whole position of public service pension arrangements. As I have indicated previously, the review will take into account the economic circumstances prevailing when the matter comes up for review later this year.
§ Mr. StokesDoes the Minister realise that inflation-proof pensions put civil servants in a specially privileged position compared with all other employees? Surely that is a tremendous factor in the total package over a man's lifetime and should be taken into account by the new review board.
§ Mr. MorrisI do not accept that inflation-proof arrangements put public servants in a privileged position. The provisions for civil servants are determined on the basis of fair comparisons. The basis of the present levels of salary, pay and pensions in the Civil Service was arrived at as a result of the activities and studies of the Pay Research Unit.