§ Mr. David Mitchellasked the Secretary of State for Social Services whether, when fixing future levels of retirement pensions, he will take into account the rapidly rising costs of public transport and the re- 348W duction in rate support grant to local authorities which compels them to economise.
§ Mr. OrmeMy right hon. Friend is required by the Social Security Act 1975 to increase pensions in line with the movements of prices or earnings, whichever is more beneficial to pensioners. Movements in prices are measured from the General Index of Retail Prices which takes into account, among other things, changes in transport costs and in local authority rate levels. In this way the matters referred to by the hon. Member are already brought into account when pension rates are fixed, and this will continue to be the position.