HC Deb 26 June 1979 vol 969 cc262-3
2. Mr. Foulkes

asked the Secretary of State for Social Services if he will consider giving a special bonus of £16 to single pensioners and £25 to married pensioners to take account of the shortfall in their pensions due to the inaccurate forecast of the level of inflation made in calculating the last pension increase.

The Under-Secretary of State for Health and Social Security (Mrs. Lynda Chalker)

No, Sir. The increased pension rates which we shall introduce from November take account of the shortfall in the rates introduced by the previous Administration last November. There is no statutory requirement to do even this and, in view of the urgent need to reduce public expenditure, we cannot do more.

Mr. Foulkes

Will the hon. Lady agree that the changes to be made in pensions will only allow prospectively for the miscalculation, and not for the miscalculation in the current year? Is she aware that in the current year pensioners are losing out by the amount that I quoted in my question? Will she take the opportunity of the Bill dealing with the Christmas bonus to introduce a summer bonus as well to make good that shortfall?

Mrs. Chalker

I am afraid that we cannot do that. As the hon. Member knows, if he looks back at the statement of my right hon. Friend, we have corrected the 1.9 per cent. shortfall that the pensioners suffered. That will have to suffice in the present economic situation.

Mr. Paul Dean

Will my hon. Friend comment on the fact that the Government propose to increase pensions by 19.5 per cent., whereas the previous Administration's proposal amounted to only 12.8 per cent.?

Mrs. Chalker

It has been necessary to make up not only the 17.5 per cent. uprating in line with the forecasts for price increases, many of which were held back in the previous four months, but to make good the 1.9 per cent. shortfall that resulted from the November 1978 up-rating.

Mr. Rooker

rose—

Mr. Nicholas Winterton

I never thought that I would see the hon. Member on the Front Bench.

Mr. Speaker

Order. The hon. Member for Macclesfield (Mr. Winterton) may find himself there one day, with a bit of luck.

Mr. Rooker

He did, Mr. Speaker, but he did not last very long.

If the Government miscalculate their inflation forecast of 17½ per cent., will they do what the previous Government did and promise to make good the shortfall?

Mrs. Chalker

I congratulate the hon. Member for Birmingham, Perry Barr (Mr. Rooker) on his elevation to the Opposition Front Bench. The hon. Gentleman takes far too pessimistic a view. Of course, we shall consider the effect of this year's uprating when we have the actual price movements to November. But I cannot make any forward predictions. It would be foolish for anybody in this House to do so.