§ Mr. Arthur Lewisasked the Chancellor of the Exchequer what is, for the latest 541W convenient stated date, the depreciation in the purchasing value of the £ sterling since retirement pensions were last increased, using as the basis the fall in the purchasing value of the £ sterling, the increase in the general Retail Price Index, and the increase in food prices only, respectively; and what is his estimate of the respective increases required to restore their purchasing power.
§ Mr. Taverne:It is estimated that between November, 1969, the date when National Insurance retirement pensions were last increased, and April, 1970 the internal purchasing power of the pound sterling declined by 4.0 per cent. The increases in the standard National Insurance retirement pension rates needed to restore their purchasing power to the November, 1969 level would be 4s. 2d. for a single person and 6s. 10d. for a married couple.
These estimates are based on movements in the general index of retail prices which increased by 4.2 per cent. between November, 1969 and April, 1970. In the same period the food component of the index of retail prices rose by 6.1 per cent. Since food forms only part of the expenditure of households, estimates of changes in purchasing power cannot be based on movements in prices of food alone.