HL Deb 29 October 1959 vol 219 cc133-5

3.5 p.m.

LORD STONHAM

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they are aware that on the 9th of October the market value of the shares of British industrial firms increased by £800 million and whether, in view of this evidence of the country's increasing prosperity, Her Majesty's Government will make arrangements to pay an increase of 10s. 0d. per week in retirement, old age and widows' pensions and in unemployment benefit.]

THE MINISTER WITHOUT PORTFOLIO (THE EARL OF DUNDEE)

My Lords, I could not help noticing the manifestations of confidence in our future which showed themselves throughout the country on October 9. The noble Lord will be aware that it is our intention to secure that the recipients of social service payments shall continue to share in the increasing prosperity which the continuation of sound economic policies will bring in due course to our country.

LORD STONHAM

My Lords, is the noble Earl aware that one of the manifestations on October 9 was in the Evening Standard, which read as follows: Britain has a song in its heart tonight. Investors are singing 'Land of Hope and Tory' as they look eagerly for more liberal dividends and tax cuts. Will the noble Earl say whether that was what they won the Election for, or will he not agree with what I think is the wish of everybody in this country of all political Parties—namely, that the old people should get an increase in their pension now so that they can keep warm and keep alive during the winter, and that there should not be this delay when quite obviously the country can afford the increase?

THE EARL OF DUNDEE

My Lords, this Question relates to the statutory retirement pensions, and the Government certainly intend to adhere to the declarations they have made, which are expressed in paragraph 34 of the White Paper, that they will review the position as the prosperity of the country increases.

VISCOUNT ALEXANDER OF HILLSBOROUGH

Would you not begin to act at once, or are the old people to be left as they are, to pay up to 6s. 2d. a pound for butter before Christmas, as announced this morning in the Press? Are you not going to give immediate consideration to the needs of the old people, and not merely adjust matters for those who are still able-bodied enough to go to work?

THE EARL OF DUNDEE

My Lords, that seems to be a question affecting perhaps National Assistance rather than contributory pensions. I do not want to say anything which might give the impression that we do not mean to give attention to contributory pensions, too; but we have very recently raised the National Assistance rates, which are now considerably in excess of the statutory retirement pension.

LORD STRATHCLYDE

My Lords, would my noble friend care to refresh the memory of members of the Opposition as to the action they took, or did not take, to help the old age pensioners during the period they were in office?

THE EARL OF DUNDEE

That is certainly in my mind, but I do not wish to remind noble Lords about it with any controversial motive. I am sure that we all want to do our best to improve the social services of our country, and I wish there were not so much Party dispute about it.

LORD HENDERSON

My Lords, the noble Earl said that he did not want to create the impression that the Government were not prepared to do something, or did not intend to do something. Is he prepared to create the impression that the Government intend to do something?

THE EARL OF DUNDEE

My Lords, I think I have already answered that point. The only reason I said what I did was that I wanted to be careful not to give the impression that we thought National Assistance was a substitute for retirement pensions, but to convey that they must both be considered in their proper relationship to each other.

LORD STONHAM

My Lords, can the noble Earl say, in view of the extract from the newspaper which I read, referring to the hopes of tax cuts, whether it is the Government's intention to increase retirement and old age pensions before there are any cuts in taxation?

THE EARL OF DUNDEE

My Lords, I cannot give any statement about Government intentions without consulting the Minister of Pensions, but I should have thought, surely, that an increase in the rate of the statutory retirement pension would involve an increase in the rate of contribution to the Pensions Fund, which is not at all the same thing as a reduction of tax.

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