§ Mr. Corrieasked the Secretary of State for Social Services why there is a differential in increases of pensions between British citizens in the United Kingdom and those living overseas.
§ Mr. O'Malley :The national insurance scheme is designed primarily for people living in this country and pension levels are related to social and economic conditions here. The cost of increasing pensions already in payment falls mainly on contributors and employers in this country. Increases are, however, paid abroad if the pensioner is living in a country with which we have an appropriate reciprocal agreement.