HC Deb 09 March 1982 vol 19 cc713-4
15. Mr. Michael Marshall

asked the Secretary of State for Social Services whether he has any proposals for shortening the waiting period between the announcement of pension uprating and its actual payment to individual pensioners.

Mr. Rossi

The period could be shortened only by delaying the announcement or by bringing forward its implementation. [Interruption.] The Government do not wish to do the former and it is not administratively practicable to do the latter.

Mr. Marshall

Does my hon. Friend accept that the waiting period causes concern and that resentment arises when pensioners receive amounts that may lead to clawback at a subsequent stage? In this International Year of Information Technology cannot the administrative difficulties be overcome as they are in other European countries?

Mr. Rossi

In those other European countries payments are made on a monthly basis and the task is much easier. In Britain about 9 million payments are made by means of order books and they are payable weekly. The order books are issued 20 weeks in advance. Another complication is that we also deal with supplementary benefits that have to be calculated individually. That could not be done if we were to bring forward the date of implementation.

Mr. John

Will the Minister give an assurance that it will be 52 weeks from the last uprating to the next uprating, and not 54 weeks as the Government managed on one shabby occasion?

Mr. Rossi

The hon. Gentleman already knows the answer to that question.

Mr. Dickens

Approximately two years ago the House was told that, as a result of advanced computerisation, the time lag between the announcement and receipt of pensions could be shortened. What has happened to that computerisation and why have we changed our tune?

Mr. Rossi

We have not changed our tune. Computerisation is in progress and when it is completed it may be possible to overcome the practical problems.

Mr. Skinner

Who did the Minister think he was kidding when he replied to the question asked by the hon. Member for Huddersfield, West (Mr. Dickens)? Is he aware that the Inland Revenue's computer allows it to deduct tax from old-age pensioners who receive additional pensions, such as those from the National Coal Board., and who have a total net income of £37 per week? That computer flashed into action within a couple of months of the first payment from the NCB. Why does not the Minister get hold of that computer so that he can pay out pensions a lot quicker? If he cannot wrest it from the Inland Revenue's grasp, why does he not do what we suggested last month during the debate on pensioners, and pay pensioners twice yearly?

Mr. Rossi

For the reasons that I have given, the hon. Gentleman's suggestion is totally impracticable. [Interruption.] The hon. Gentleman is obviously not aware of the complexities surrounding the computer. The Inland Revenue would like to computerise PAYE, but has been unable to do so because of the number of people involved and because of all the variations in individual cases.