HC Deb 20 February 1919 vol 112 cc1152-3W
Sir F. HALL

asked the Secretary to the Treasury if he is aware that the increase in the cost of living at the present time is about 130 per cent. compared with the period before the outbreak of war; whether any increase has been made in the pension scale of Civil servants to assist in meeting this increase; if not, whether the Government has the matter under consideration; and what action they propose to take in the matter.

Mr. BALDWIN

I cannot accept 130 per cent.—which is merely the amount of the average change of retail prices—as the correct figure for the increase in the cost of living, which was found by the Sumner Committee to be only 80 per cent. in the case of urban working-class households.

The question of an addition to the pensions of Civil servants has been carefully considered by both the present and the late Governments. The Government is not prepared to introduce legislation to secure the proposed increase, the cost of which would be prohibitive.

Sir HERBERT NIELD

asked the Secretary to the Treasury (1) whether the necessities of pensioned Civil Service officers have been, or are proposed to be, considered by the Treasury in view of the increase in the cost of living; and whether, having regard to the fact that age or infirmity in the majority of cases prevents the pensioners from working to add to their incomes, he will endeavour to increase the pension by a corresponding sum to that whereby the purchasing power of the sovereign has been reduced; (2) whether, as the active staff of the Civil Service, both indoor and outdoor, have been accorded war bonuses to compensate for the increased cost of living, he will see that an equivalent sum is added to the pensioned officers of the Service, having regard to the fact that pensions granted previous to the War were based on the value of money at that time, and that pensions are deferred pay and not gratuities?

Mr. BALDWIN

I have nothing to add to my answers to the hon. and gallant Members for Dulwich and Leith on the 13th instant, except that Civil Service pensions are not deferred pay, as suggested.