§ Mr. ViggersTo ask the Chancellor of the Exchequer what representations he has received from civil service pensioner representatives that uprating of pensions to take account of inflation should be carried out at six-monthly intervals rather than annually; and what is his response and his reasons therefor.
§ Mrs. Gillian ShephardMy Department has received no formal representations from groups representing public service or civil service pensioners on this point, although from time to time correspondents suggest such a change. Because of the administrative work involved in uprating public service pensions and social security benefits, these payments are made in arrears.
The uprating in April is based on the movement in prices in the 12 months to the previous September. These pensions are thus fully protected against inflation, and the system fully protects the interests of pensioners. More frequent uprating would not make the system any fairer, but would involve substantial additional administrative cost.