HC Deb 23 February 1921 vol 138 cc976-7W
Sir H. NIELD

asked the Minister of Health whether, in relation to the War bonus to civil servants (which has been extended to the staffs of most local gov- ernment bodies), he is aware that, under the decision of the Whitley Council set up by the Government on the one hand and the Civil Service representatives, the War bonus will be raised on 1st March based on the average result of the index figures for the past five months, namely, 165, although the figure for 1st February was 151 and is rapidly falling; whether the result is that, in addition to the large increases now being received, the bonus will be further increased by 10 points or 2/26ths of the present payments, and will so remain for the following six months, although the cost of living has fallen considerably, and is still falling; and is he aware that, this being so, all persons subject to the Civil Service bonus scales will receive out of the public, either through Imperial or local taxation, an added bonus equal to £165 for six months, while the other sections of the community, comprising very largely those who have the utmost difficulty to pay the excessive burdens of taxation, are made to bear the costs and resultant expenses of the War, this privileged class not only escape but are in a better condition as the result?

Mr. BALDWIN

Under the Civil Service bonus scheme, which provides for periodical revisions on the basis of the average of the cost of living figures for the period preceding the date of revision, the bonus now payable will be increased by 2–26ths as from 1st March next. The revision at that date will be based on the average figure for the four months preceding, not five, as stated; and the revised bonus will be calculated with reference to a cost of living figure of 165. The allusion in the hon. Member's question to £165 appears to be a printer's error. I should perhaps add that the system of assessments in force is not, as the hon Member's question would appear to suggest, entirely in favour of the Civil Service. Thus, although the cost of living figure had risen to 150 in June last and was still rising, the bonus payable to civil servants was revised as from 1st July last on the basis of an average of 135; and again, in November last, by which date the most recently published cost of living figure was 164 and a further considerable rise was in prospect, the bonus was revised on the basis of an average of 155.