Social Security (No. 2) Bill

HC Deb 03 June 1980 vol 985 cc1224-6

3. Mr. William Hamilton

asked the Secretary of State for Social Services what representations he has received in the last month from outside organisations on the provisions of the Social Security (No. 2) Bill; and what steps he intends to take to satisfy their requests for amendments to the Bill.

Mr. Patrick Jenkin

I have received representations on the Social Security (No. 2) Bill from 23 organisations, many of which were concerned about the impact of the Bill on the long-term sick. I have already undertaken that, subject to the availability of resources, invalidity benefit and unemployability supplement will be realigned with retirement pension when they are brought into taxation. I believe that this and the Government's acceptance of the amendment to clause 3 of the Bill proposed by my hon. Friend the Member for Exeter (Mr. Hannam) will have helped to allay the fears of the organisations concerned.

Mr. Hamilton

Does not the right hon. Gentleman feel thoroughly ashamed of a Bill that does not have the support of one voluntary organisation that is interested in these matters? Why did he refuse to meet these organisations whilst the Bill was going through Committee, as the organisations told us was the case? What further progress has been made in his consultations with the NUM and the NCB so far as the Bill affects them?

Mr. Jenkin

First, I believe that the Government were right to have the courage to bring forward the necessary measures to bring public expenditure under control. I have not refused to meet organisations. I have now met every organisation that has asked for a meeting. Some of those which asked earlier had meetings with my officials, and in view of what they heard, and the representations that they made, they did not feel it right to ask for another meeting.

The National Coal Board and the National Union of Mineworkers schemes are matters for my right hon. Friend the Secretary of State for Energy.

Mr. Paul Dean

I accept that the Social Security (No. 2) Bill represents a sensible allocation of priorities in difficult circumstances, but will my right hon. Friend assure the House that it is the Government's firm intention, as soon as resources become available, to resume progress in providing both cash benefits and services for the disabled?

Mr. Jenkin

I am grateful to my hon. Friend for his kind words. The Government's whole strategy is designed to create an economy that will provide the resources to enable us not only to raise our standard of living generally but to afford a proper level of social services. The more we are successful in that object, the more quickly we shall be able to resume the kind of benefits for these people that we want to see.

Mr. Ennals

Has the Secretary of State had representations from organisations representing war pensioners? Is he aware that the announcement by the Minister for Social Security over the weekend of an increase of 16½ per cent. for war pensioners in November will be viewed by both war pensioners and organisations representing them as an absolute betrayal of commitments by successive Governments to give proper protection to those who were wounded as a result of war service? Is he aware that 16½ per cent. in November will be much less than the rate of inflation? Is this not grossly unfair to war pensioners, apart from any others?

Mr. Jenkin

My right hon. Friend was well received by the war pensioners' organisations which he met in Scotland over the weekend. The right hon. Gentleman implied that we were in bad odour, but that is not so. My right hon. Friend was well received.

Recent rates of inflation are not expected to continue. We expect a fall in the rate of inflation in the coming months. The forecast at the time of the Budget was of a 16½ per cent. increase in prices between November 1979 and November 1980, the uprating date for the increase. On that basis, an increase of 16½ per cent. in war pensions, as in other long-term benefits, will restore the value of those benefits.

Mr. Orme

Is the Secretary of State aware that as people become knowledgeable about the Social Security (No. 2) Bill they become appalled that the earnings-related benefits of the sick, the unemployed and those suffering from industrial injury are to be drastically affected? What has the right hon. Gentleman got to say about bringing those benefits into line in 1982?

Mr. Jenkin

As I said in the debates on clause 4 of the Bill, if, after the earnings-related benefit has been phased out under the Bill, additional resources become available for the improvement of social security generally, a decision will have to be taken whether those resources should be used to restore the earnings-related benefit, but many people could point to higher priorities than that.