HC Deb 25 May 1972 vol 837 cc479-80W
Mr. Arthur Lewis

asked the Lord President of the Council (1) whether he will give the annual loss in the purchasing value of the basic pension paid to former Members of Parliament under the Members' Contributory Pension Fund since October, 1964, due to the depreciation in the purchasing value of the £ sterling; and what to date has been the cumulative loss to these pensioners;

(2) whether he will publish in the OFFICIAL REPORT a table of figures giving the minimum basic pension paid to former Members of the House of Commons under the Members' Contributory Pension Fund as at October, 1964, and on the basis of the £ sterling then having a purchasing value of 20 shillings; and what, at six-monthly intervals to date, this pension was worth in purchasing value, taking account of the depreciation in the purchasing value of the £ sterling.

Mr. R. Carr

The detailed information requested is given below, but on the assumptions there indicated, the current purchasing value of a £600 minimum pension in 1964 terms is about £480, and the cumulative loss to date about £638.

Following is the information:

Purchasing value Approximate annual loss
Date £ £
October, 1964 600
April, 1965 578
October, 1965 572 22
April, 1966 558
October. 1966 551 42
April, 1967 541
October, 1967 540 59
April, 1968 518
October, 1968 512 82

The losses of cutlery, glassware and crockery (including breakages) from the Refreshment Department for each of the past five years are as follows:

April, 1969 491
October, 1969 486 109
April, 1970 465
October, 1970 452 135
April, 1971 425/510
October, 1971 496 133
January, 1972 488
April 1972 480 56
Cumutative loss £638

Notes:

1. This table has been compiled by reverence to a minimum pension of £600 per annum for 10 years' service, increased to £720 per annum with effect from 9th April, 1972, by virtue of S.I. 1971 No. 623.

2. The purchasing value of the pension for each of the dates given has been estimated by reference. to the General Index of Retail Prices.

3. The approximate annual loss for each 12-month period ending in October has been estimated on the assumption that the purchasing value in the previous April represented the average value during the 12 months. Similarly the loss for the six months ending in April, 1972, has been estimated by reference to the purchasing value in January, 1972. A more accurate calculation has not been possible in the time available.

4. The figures for April, 1971, show the estimated purchasing value of the pension before and after the 20 per cent. increase which took effect that month. The approximate annual loss for the 12 months ending in October, 1971, has been estimated by reference to the mean of these figures

5. The cumulative loss of £638 shown above is in terms of October, 1964, prices. The corresponding figure in terms of April 1972 prices is £958