§ Mr. Graham Pageasked the Secretary of State for Social Services when the general increase of £6 a week in incomes will be available for pensioners and disabled persons.
§ Mr. O'MalleyAs the White Paper "The Attack on Inflation" makes plain, the £6 referred to by the right hon. Gentleman is the limit for pay increases in the current pay round. The position of retirement and invalidity pensioners is governed by the existing legislation, which requires my right hon. Friend periodically to review and increase pensions in 729W line with the general movement of earnings, or prices if this would be more advantageous to pensioners. To increase the standard rate of retirement and invalidity pensions for single persons by £6 a week, and other benefits by the same percentage, would cost over £3,800 million in a full year, on top of the cost of the increased pensions payable next month, and this would result in a large increase in national insurance contributions, as well as increased cost to the Exchequer.