§ Mr. McKibbinasked the Chancellor of the Exchequer, in view of the fact that the bounty for holders of the Victoria Cross was fixed at £10 in 1856, what sum he estimates would now be required to provide a bounty of the same purchasing value as the existing bounty had in 1856.
§ The Prime Minister:I am replying to this Question since it deals with awards.
The annuity of £10 was first authorised in 1878. The reply, related to that year, is about £40. This figure is based on unofficial estimates for 1856–1914, the cost-of-living index 1914–38, and the consumer price index and retail price index since 1938.
There is now provision whereby the normal annuity of £10 in any case of need may be increased to £75. In addition, pensions for other ranks are increased by 6d. a day. The annuity and additional pension are not liable to Income Tax. The annuity if paid with a pension, and the 6d. a day addition to pension, are eligible for increase, with the pension, under the pension increase schemes. These provisions introduced since 1878 tend to make the comparison in the Question inappropriate.