§ Mr. Rookerasked the Secretary of State for Social Services if he will clarify the Minister of State's answer to the hon. Member for Pontypridd (Mr. John) concerning the increase in the real value of pensions during the debate on 4 February, Official Report, column 624.
§ Mr. Rossi,I do not wish to deny that the standard rates of retirement pension increased in real terms by 20.1 per cent. between October 1973 and November 1978, largely as a result of the July 1974 uprating. Only about a quarter of this increase was the result of the movement of the higher of earnings or prices. This provision came into force in April 1975. Both in. April 1975 and November 1978 upratings failed to match the movement of the higher of earnings or prices from the previous uprating. Furthermore, by altering the method of uprating for the November 1976 uprating the previous Government made a saving of £500 million at the expense of pensioners and other recipients of long-term benefits. Between March 1974 and May 1979 inflation increased by 110 per cent., which had severe effects on all those with savings, particularly the elderly.