HC Deb 16 December 1980 vol 996 c128
2. Mr. Canavan

asked the Secretary of State for Social Services what representations he has received about his decision to stop index-linking of retirement pensions.

The Secretary of State for Social Services (Mr. Patrick Jenkin)

No such decision has been made.

Mr. Canavan

Why, then, is the Secretary of State hell-bent on trying to make pensioners the scapegoats for the failure of Tory economic dogma, first by stealing two weeks' pension increase from them and, secondly, by reducing the real value of the retirement pension by refusing to keep it in line with the rate of inflation? Is the right hon. Gentleman proud to be cast in the role of a Tory bovver boy who specialises in mugging defenceless old men and women?

Mr. Jenkin

The only bovver boys in this game are the people who consistently misrepresent the Government's policy.

Mr. Paul Dean

Will my right hon. Friend confirm that the 16½per cent. pensions increase which came into effect on 24 November more than compensated for price rises, and that my right hon. Friend the Prime Minister said that the Government intend to compensate fully for price increases over the lifetime of a Parliament"?—[Official Report, 25 November 1980; Vol. 994, c. 488.] If that is correct, should not the Opposition be ashamed of their blatant use of pensioners as political footballs?

Mr. Jenkin

I entirely agree with what my hon. Friend has said.

Mr. Buchan

Does not the Secretary of State agree that the decision to remove the indexing by cutting it by 1 per cent. below the level is just about the meanest and pettiest act of this mean and petty-minded Government? Is it really worth it to clobber the 8 million or 9 million old people in this country to save £60 million, which the Treasury could easily have achieved by a minor cut in the taxation handout to the rich?

Mr. Jenkin

The hon. Gentleman will know that we gave an undertaking that pensions would remain in line with prices. As my hon. Friend the Member for Somerset, North (Mr. Dean) said, the Prime Minister confirmed that from the Dispatch Box only a few weeks ago. This year we have overshot, probably by about 1 per cent., but, of course, we shall not know that until the detailed figures are published. It is entirely consistent with the pledge which the Government have given that the adjustment should be made next year to take account of that.