§ Mr. Gowerasked the Minister of Pensions and National Insurance what would be the approximate annual cost of increasing the basic rates of retirement pensions by 10s. per week and 5s. per week for all retirement pensioners; what would be the annual cost involved if such increases were introduced for male retirement pensioners aged more than 70 years and females over 65 years, or for male retirement pensioners aged more than 75 years and females over 70 years.
§ Mr. N. MacphersonThe immediate cost to the National Insurance Fund of an increase of 10s. a week in the rates of retirement pensions (including those for wives) without any increase in other insurance benefits or war pensions would be over £150 million a year for all pensioners, nearly £115 million if restricted to men over 70 and women over 65, or more than £70 million if restricted to men over 75 and women over 70. This cost would rise by 1983–84 to about £205 million, £165 million or £110 million respectively. A 5s. increase would cost half as much.
§ 3. Mr. Hector Hughesasked the Minister of Pensions and National Insurance if he is aware that the continuing increase in the cost of living has inflicted great hardships on old people; and if he will take steps to reduce these hardships by an early and appropriate increase in their retirement allowances.
§ Mr. N. MacphersonIt has never seemed desirable or practicable to adjust pensions at very frequent intervals to match small fluctuations in the cost of living, but I would remind the hon. and learned Member that over the last ten years the rise in the cost of living has been more than matched by increases in the rates of retirement pension.