§ Mr. Kenneth Clarkeasked the Secretary of State for Social Services what was the movement of prices and earnings between March 1975 and November 1975; and whether the pension proposals in the Budget were so calculated as to compensate retirement pensioners and other recipients of long-term benefits for the fall in the value of their pensions that that movement caused.
§ Mr. MeacherBetween March 1975 and November 1975 prices rose by 16 per cent.—General Index of Retail Prices, all items—and earnings by 14 per cent.—monthly index of average earnings, all employees. The pension rate proposed for November 1976 will be 53 per cent, higher than the £10 pension which the Government introduced in July 1974 and more than compensates for the actual and likely increases in earnings and prices over the whole period since then.
§ Mr. Kenneth Clarkeasked the Secretary of State for Social Services what saving to public funds has resulted from the basing of the up-rating of pensions and long-term benefits as from November 1976 as an estimate of the likely movement of prices and earnings between November 1975 and November 1976 rather than the actual movement of prices 422W and earnings between March 1975 and March 1976; and what reduction in the announced levels of pensions and benefits has resulted.
§ Mr. MeacherFigures for March 1976 are not yet available. However, it seems likely that a pension increase which reflected the movement of earnings and prices in the year ending then would have resulted in new rates some 5 or 6 per cent, higher than those announced on 7th April and that the extra annual cost for pensions and other long-term benefits would have been upwards of £400 million.