§ Q3. Mr. Andrew F. Bennettasked the Prime Minister whether, in view of current inflation rates, she is satisfied with the current level of retirement pensions and Christmas bonus.
§ The Prime MinisterThe Government are committed to compensate the national insurance retirement pensions fully for price increases over the lifetime of this Parliament, and I have made it clear that the Government will make good any shortfall from one uprating at the next uprating. The £10 Christmas bonus is, as the name makes clear, an extra payment for pensioners and is the most that we can afford within the limits of available resources.
§ Mr. BennettDoes the Prime Minister accept that the Government's estimate of the November inflation rate is wrong and that pensioners have not had a sufficient increase this year to compensate for inflation? Does she therefore agree that the Government should not wait until next November to put this right, but that it should be put right immediately, either by increasing this year's Christmas bonus or at least by introducing an Easter bonus to make good the shortfall?
§ The Prime MinisterThe shortfall will be made good at the next uprating, which will take place next November. The hon. Gentleman will recall that there was a shortfall in the November 1978 uprating. That was made good by the Conservative Government in November 1979.
§ Mr. EnnalsDoes the Prime Minister accept that never before have a Government consciously reduced the amount payable to pensioners below even the Government's own expectations and that now, for a whole year, the figure will be roughly 3 per cent. less than the actual rate of inflation? Does she agree that that is a deplorable situation for elderly people?
§ The Prime MinisterI do not accept the figure of 3 per cent. I think that 2 per cent. is more accurate. I should point out that the uprating effective from November 1978 was based upon an underestimate of 1.9 per cent.