§ 3.6 p.m.
Lord Campbell of CroyMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
The Question was as follows:
To ask Her Majesty's Government whether some of the £9 million resulting from an error in the retail price index, which they now intend should be used for charitable purposes, will be directed to increasing the age allowances in the pensions of elderly war widows.
§ The Earl of ArranMy Lords, no. The intention is to allocate this money to charities broadly helping those who will not receive special payments to compensate them for the error in the retail prices index. War widows will receive special payments. The 208 money will, moreover, be a one-off sum which could not provide for the recurring costs of improvements in any benefits or pensions.
Lord Campbell of CroyMy Lords, I am grateful to my noble friend for his reply but I hope that the Government have not yet made up their minds. As the number of these widows is limited and is, of course, dwindling, can my noble friend think of any more deserving cause when consideration is being given to the distribution of this windfall?
§ The Earl of ArranMy Lords, I think it would be of interest if I informed the House that the standard war widow's pension is £51.35 a week, increasing to £53.50 in April That is free of tax. is 30 per cent. higher than the taxable National Insurance widow's pension. On top of that, age allowances are payable of £5.50 at 65, increasing to £11 at 70 and £13.85 at 80. The age allowances will be increased in April to £5.75, £11.50 and £14.45 respectively;
Some 85 per cent. of war widows are aged 65 and over. In addition, a war widow may receive a retirement pension if she has worked and paid the necessary contributions.
Lord ChelwoodMy Lords, while I find my noble friend's reply very discouraging, nevertheless perhaps I may take this opportunity, through him, of thanking the Government for the very sympathetic way in which they have listened to representations made to them by the British Legion, the War Widows of Great Britain and the Officers' Pensions Society.
Is my noble friend aware that the only really satisfactory answer which would please everyone is an across-the-board uprating of all war widows' pensions? Meanwhile, can the Government endeavour to get rid of the gross anomaly to which my noble friend has drawn attention? At the same time, can he deal with a further anomaly concerning elderly war widows who are still on the one-third pension rate, which seems to me impossible to justify?
§ The Earl of ArranMy Lords, no one in this House can or ever will forget the immense debt of gratitude that we owe to those who fought and laid down their lives in defence of their country. With particular regard to their widows and that which they receive, the Government have to temper that which they consider reasonable with the funds available. As regards the age entitlement to war widows, there is no justification for linking the age allowance to the normal retirement age for women. It is essentially intended to recognise the additional needs of elderly war widows as they grow older.
Lord WinstanleyMy Lords, has the attention of the noble Earl, or that of his ministerial colleagues, been drawn to the anomaly arising from the repayment of some of this money, whereby a person receiving benefits on two books has received two amounts of £8—that is, £16—whereas a person receiving the same benefit on one book has received only £8? If the noble Earl is aware of that anomaly will he kindly do something about it?
§ The Earl of ArranMy Lords, those who have a retirement pension from their own insurance, a widow's benefit or who receive invalidity benefit combined with a higher rate of attendance allowance.
§ Lord Boyd-CarpenterMy Lords, is my noble friend aware that despite the mitigations of the rule to which he has referred, there are many people who find it very difficult to understand how it is possible to justify paying a lower pension to the war widow pre-1973 than to those widowed after that date? Surely it is the older war widow whose need is the greatest.
§ The Earl of Arran; My Lords, the level of the war widow's pension is the same regardless of when or where the serviceman died. The disparity in total pension provision is due to improvements made in 1973 by the Ministry of Defence in its occupational pension scheme for servicemen. War widows whose husbands served after 1973 receive an attributable widow's pension under that scheme as well as a war widow's pension. The improvements were not made retrospective because of the enormous additional cost (£200 million a year for war widows), and because of the repercussions for public service pensions as a whole.
§ Baroness JegerMy Lords, having gratefully received my old lady's £8 from Her Majesty's Government, perhaps I may ask what organisations are being chosen to distribute the £9 million? Are any instructions or guidance being given to these organisations or are they totally to use their own discretion?
§ The Earl of ArranMy Lords, as regards the charities, this matter is being considered. Advice is being taken from the Charities Aid Foundation, and a public announcement will made in due course
Lord WinstanleyMy Lords, I am so sorry to press the noble Earl but I believe that he may have read out the wrong answer to my question. Perhaps I may remind the noble Earl of what I actually asked—why was it that a person receiving certain benefits on two books received £16, whereas another person receiving precisely the same benefits on one book received only £8?
§ The Earl of ArranMy Lords, the answer is that I believe I can satisfy the noble Lord on that point. Having two benefits in one book does not automatically mean that the claimant has suffered twice from the RPI error. The special compensation payments fully compensate the great majority of people including those who have combined order books. Fewer than 10 per cent. of people with combined order books would be under-compensated for the error because of the method of payment.