Public Service Pensions (Hansard, 22 July 1965)

§ Mr. Pounder
asked the Chancellor of the Exchequer if he will publish a table giving detailed particulars of the categories of public service pensioners to whom to grant parity of pension would cost £100 million.

§ Mr. MacDermot
The figure of over £100 million is based on the following estimates:

£ million

Armed Forces … … 25

Civil Service … … 25

Teachers … … 23

Local Government … … 14

Police and Fire Services … … 11

National Health Service … … 3

Overseas Pensions … … 8

Total … … 109

The cost would be likely to grow in future years.

§ Mr. Pounder
asked the Chancellor of the Exchequer what reply he has sent to the representations which he has received from the Public Service Pensioners Council regarding parity of public service pensions; and when he expects to be able to make an announcement regarding the review which is being undertaken.

§ Mr. MacDermot
The Public Service Pensioners Council has been informed that full acount is being taken of its representations in the current review which is being pressed forward. I have no announcement to make at present.

§ Mr. Dean
asked the Chancellor of the Exchequer if he will publish a table showing what a public service pensioner who retired in each year from 1936 onwards now gets in respect of each £100 of original pension, assuming he was 269W 45, 50, 55 or 60 at date of retirement; and what that original £100 would now be if its purchasing power had been maintained in full.

Mr. MaeDermot
It is not possible to calculate the amount of increase on each £100 of a pension, since the effect of several Pensions (Increase) Acts has been to give a higher proportionate increase to the smaller pensions. The information in the table below relates to a basic

Retirements at 31st December 1936 1937 1938 1939 1949 1950 1951 1952 1953 1954

£ £ £ £ £ £ £ £ £ £

At age 45 £100 pension as increased 241 241 241 241 158 152 146 123 121 119

At age 50 £100 pension as increased 241 241 241 241 158 152 146 123 121 119

At age 55 £100 pension as increased 241 241 241 241 178 152 146 123 121 119

At age 60 £100 pension as increased 241 241 241 241 178 172 166 143 141 139

At age 65 £100 pension as increased 241 241 241 241 178 172 166 143 141 139

Sum required to give purchasing power equal to original £100 pension 270 253 260 236 179 175 156 147 145 140

Retirements at 31st December 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964

£ £ £ £ £ £ £ £ £ £

At age 45 £100 pension as increased 116 112 108 106 104 102 100 100 100 100

At age 50 £100 pension as increased 116 112 108 106 104 102 100 100 100 100

At age 55 £100 pension as increased 116 112 108 106 104 102 100 100 100 100

At age 60 £100 pension as increased 116 112 108 106 104 102 100 100 100 100

At age 65 £100 pension as increased 136 129 122 116 111 102 100 100 100 100

Sum required to give purchasing power equal to original £100 pension 131 127 122 120 120 118 112 110 108 103

The equivalent purchasing power has been calculated according to the increase in the cost of living as measured by the Ministry of Labour's Cost of Living and Retail Price Indices.

			£ million
Armed Forces	…	…	25
Civil Service	…	…	25
Teachers	…	…	23
Local Government	…	…	14
Police and Fire Services	…	…	11
National Health Service	…	…	3
Overseas Pensions	…	…	8
Total	…	…	109

Retirements at 31st December	1936	1937	1938	1939	1949	1950	1951	1952	1953	1954
	£	£	£	£	£	£	£	£	£	£
At age 45 £100 pension as increased	241	241	241	241	158	152	146	123	121	119
At age 50 £100 pension as increased	241	241	241	241	158	152	146	123	121	119
At age 55 £100 pension as increased	241	241	241	241	178	152	146	123	121	119
At age 60 £100 pension as increased	241	241	241	241	178	172	166	143	141	139
At age 65 £100 pension as increased	241	241	241	241	178	172	166	143	141	139
Sum required to give purchasing power equal to original £100 pension	270	253	260	236	179	175	156	147	145	140

Retirements at 31st December	1955	1956	1957	1958	1959	1960	1961	1962	1963	1964
	£	£	£	£	£	£	£	£	£	£
At age 45 £100 pension as increased	116	112	108	106	104	102	100	100	100	100
At age 50 £100 pension as increased	116	112	108	106	104	102	100	100	100	100
At age 55 £100 pension as increased	116	112	108	106	104	102	100	100	100	100
At age 60 £100 pension as increased	116	112	108	106	104	102	100	100	100	100
At age 65 £100 pension as increased	136	129	122	116	111	102	100	100	100	100
Sum required to give purchasing power equal to original £100 pension	131	127	122	120	120	118	112	110	108	103
The equivalent purchasing power has been calculated according to the increase in the cost of living as measured by the Ministry of Labour's Cost of Living and Retail Price Indices.