HC Deb 24 November 1970 vol 807 cc65-6W
54. Mr. Roy Hughes

asked the Secretary of State for Social Services what is his estimate of the cost of providing £1 per week increase on the rate of retirement pension for a single person and 30s. increase for a married couple.

Mr. Dean

About £340 million a year without allowing for accompanying changes in other benefits.

Mr. Roy Hughes

asked the Secretary of State for Social Services what plans he has to regularly review retirement pensions to ensure a general uplifting of the scales of payment and to ensure that the increases take into account the increases in the cost of living.

Mr. Dean

We intend to review retirement pensions every two years and ensure that they at least keep pace with increases in the cost of living. The next such review is due next year.

20. Mr. Hayhoe

asked the Secretary of State for Social Services at what date an increase in the National Insurance retirement pension must be announced in order to prevent the pension's purchasing value falling below the level at which it stood immediately prior to the last increase in November, 1969, on the basis that the cost-of-living rises at an annual rate of 7 per cent., and that the time between the announcement of an increase and its payment is as short as possible.

Mr. Dean

At this point in time I cannot go beyond reminding my hon. Friend that our pledge is to review pension rates every two years to ensure that they keep pace with the cost of living, and that the next review is due in 1971.

Mr. Hayhoe

asked the Secretary of State for Social Services what estimate he has made of the gross and net costs to the Exchequer of off-setting the effect on the purchasing value of the National Insurance retirement pension of an increase in the cost-of-living of 4½ per cent.

Mr. Dean

The gross cost of increasing retirement pensions by 4½ per cent., if this were done exactly, would be about £80 million a year, without allowing for effects on other benefits. If this were financed along present lines, the cost of the National Insurance scheme to the Exchequer would be increased by nearly £15 million a year.