HL Deb 16 November 1982 vol 436 cc420-1

2.50 p.m.

Baroness Lane-Fox

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, as in all previous years during their administration, pensioners will receive a Christmas bonus.

Lord Trefgarne

My Lords, the £10 bonus will be paid from week commencing 29th November on the same basis as last year, and in accordance with the provisions of the Pensioners' Payments and Social Security Act 1979.

Baroness Lane-Fox

My Lords, in thanking my noble friend the Minister for that very satisfactory reply, which surely must be welcome by very many pensioners, may I ask him how many pensioners will in fact receive the bonus?

Lord Trefgarne

My Lords, 10½ million.

Baroness Jeger

My Lords, can the Minister tell us what would now be the proper bonus payment if it were to retain the original £10 value? How are the Government protecting the value of pensions in this regard?

Lord Trefgarne

My Lords, in order to restore the bonus to its 1972 value, the payment would have to be about £35, and that would cost an additional £260 million in public expenditure As has been said so often, the main thrust of our policy is to contain and reduce inflation, thus preserving the value of these benefits. However, I have to say that it would not be possible to restore this particular bonus to the figure that I have just indicated, nor indeed to any other figure above the one that we are making, without imposing unreasonably upon the public purse.

Lord Blyton

My Lords, is the Minister aware that the reply to this inspired Question will not raise any enthusiasm among the old-age pensioners? Can he further assure us that the clawback that the Chancellor of the Exchequer intends to take next year for his supposed mistake will not take the ginger off the bread?

Lord Trefgarne

My Lords, before the noble Lord contemplates what is going to happen next year, he might perhaps reflect upon the fact that pensions are to be increased by 11 per cent. next Monday.

Lord Banks

My Lords, is it the policy of the Government to allow the real value of the Christmas bonus to continue to decline in subsequent years?

Lord Trefgarne

My Lords, naturally we shall want to keep the matter under review as time passes, but I must say that it will not rate high in the priorities when compared with other improvements of benefits which yet press upon us.

Baroness Lane-Fox

My Lords, may I additionally ask my noble friend the Minister whether I am right in thinking that the bonus is tax free?—because that is an important point.

Lord Trefgarne

My Lords, my noble friend is quite correct. The bonus is tax free, and it will cost about £104 million this year.