§ Mr. Tim Smithasked the Secretary of State for Defence when the pension payable to holders of the Victoria Cross was last increased; and by how much the pension would now have to be increased to maintain its real value.
§ Mr. DuffyAn unconditional tax-free annuity of £100 is now payable to all ranks upon whom the Victoria Cross has been conferred, from the date of the award. The annuity was fixed at this amount in 1959. From the institution of the decoration in 1856 up to that year there was an annuity of £10 for noncommissioned ranks only. Provision also existed formerly for both officers and servicemen, after retirement or discharge and if unable by reason of age or infirmity to earn a livelihood, to receive further very modest annual payments. In practice few holders of the decoration claimed this additional benefit in more recent times. The £100 annuity therefore represented an entirely new finan-252W cial award rather than an increase in the existing rate.
Non-commissioned holders of the Victoria Cross on discharge have always been entitled to receive also a supplement to their pension of 2½p—formerly 6d.—a day, and this continues to apply. If a man leaves without a pension entitlement a single gratuity of £20 is paid.
No financial benefit associated with a gallantry award can be said to represent in any way the value of the action for which it was conferred. There are no proposals to enhance the present arrangements. Nevertheless, were the relevant pensions increases to be applied to the sum of £100 to maintain its real value it would now amount to £328.