§ Mr. David Nicholson
To ask the Chancellor of the Exchequer which sections of the public service have had trusts or pension or charitable funds established as a result of the underpayment of pensions in 1987–88; what are the amounts of capital vested in these trusts, pensions or charitable funds; and what are the estimated costs of establishing such trusts and administering them.
§ Mrs. Gillian Shephard
I refer my hon. Friend to the reply given by the then Paymaster General to my hon. Friend the Member for Fulham (Mr. Carrington) on 3 May 1988, at column400, in which he gave details of the existing public service charities to which donations were being made as a result of the underestimation in the retail prices index. The Paymaster General also said that, as there was no national charity on a scale desirable for the national health service, the Government would consult staff and management interests on the possibility of establishing one.
The NHS Pensioners' Trust came into operation on 1 April 1991, and it was given £1,311,000. It was the only trust, pension or charitable fund set up for the public services as a result of the retail prices index error. The estimated cost of establishing the trust is of the order of £35,000. The cost of administering the trust is a matter for the trustees.