PENSIONS (INCREASE) BILL. (Hansard, 16 May 1944)

§ THE LORD CHANCELLOR (VISCOUNT SIMON)

My Lords, I do not think that your Lordships will desire any extended speech from me in moving the Second Reading of this Bill, which is a Bill to provide for the increase of certain pensions payable in respect of public service. I had, perhaps, better make it plain that this Bill has nothing to do with pensions payable for death or disablement in the Armed Forces. Those pensions have already been increased to the level of the last war, and the cost of living in the last war was higher than it is now. Neither has this Bill anything directly to do with Service pensions—I mean pensions paid to members of the Forces on their retirement, whether officers or men. I say that it has nothing directly to do with those pensions because the need for pensions of that sort is met by Royal Warrant and not by Act of Parliament, but it has been announced that it is the intention of the Government that, when this present Bill passes, the pensions payable under the Royal Warrant to officers and men leaving the Forces shall be adjusted to correspond with the provisions of the present Bill.

This Bill deals with different matters. It really divides itself into two parts. The first part is contained in Clause 1, with which has to be read the Second Schedule, and it is a general scheme for the relief of hardship when the pensioner has no considerable resources of his own and when his pension is small. It applies, as your Lordships will see from the First Schedule, to the lower range of the Civil Service, to teachers, to the police, to firemen, to members of the Royal Irish Constabulary, to local government officials and to certain collectors of taxes. The 769 general scheme, which I need not ask your Lordships to go through with me, is to make, subject to the necessary conditions, percentage increases.

The second part of the Bill, which is in Clause 2, deals with a different matter. It contains a scheme of a special character, which is applicable to the pensions of certain classes of civil servants who retired after February 20, 1922. I had better explain the significance of that date. After February 20, 1922, Civil Service pensions were arranged to fluctuate with the cost of living, and that system continued for some time. In fact about that time the cost of living began to fall, and it fell steadily from 1922 until in 1934 both pensions and bonuses were stabilized. I think the cost of living figure at that time was about 150. Since then, as your Lordships know, the cost of living has somewhat increased, and the figure now stands at about 200. There is, therefore, manifest justice in making special provision in the direction of meeting that case, and the percentage addition to these pensions provided for in Clause 2 is designed to contribute to that end.

It is temporary provision; as provided in the Bill, it will end on December 31, 1945. We shall know better where we are then, and some matters which are still veiled in mystery may then have become somewhat plainer. This is, frankly, a temporary measure, though very acceptable, I am sure, to those who will benefit by it. The whole matter will have to be reviewed before the end of 1945. That is the nature of the Bill. It is a difficult subject, and. I hardly think that your Lordships will wish me to deal with it in more detail. There is no doubt that it will be welcomed by those who benefit by it. The Bill passed the House of Commons without a Division, and I commend it to your Lordships on this occasion and move that it be read a second time.