§ Sir George Youngasked the Minister of State for the Civil Service what would be the cost to public funds of reducing the five-month delay in the implementation of pension increases under the Pensions (Increase) Act 1971 to one month.
§ Mr. Charles R. MorrisThe present timetable reflects the processes which have to be gone through in assessing and implementing the increases. The retail price index for mid-June, on which the increases are based, is not published until towards the end of July. An order authorising the increases has then to be prepared and laid before Parliament, 495W explanatory material has to be printed and the pension authorities have to revise over 1 million individual pension rates. It would involve disproportionate expense to establish the extra cost in terms of staff and equipment of achieving any significant shortening of the existing timetable.
The Pensions (Increase) Act 1971 does, however, allow for the five-month period by including an extra margin when a pension is first increased. This margin is carried forward at subsequent annual reviews so that pensions are, as nearly as possible, adjusted to 1st December price levels.