§ Mr. Shepherdasked the Minister for the Civil Service what would be the saving to the Exchequer if Civil Service occupational pensions which are currently index linked were to have the increments limited to the average percentage increase award under his present pay policy but after taking account of any increase in the retirement pension.
§ Mr. Charles R. MorrisThe cost of increasing Civil Service pensions next December by 13.8 per cent., as announced in my Written Answer to my hon. Friend the Member for Thornaby (Mr. Wrigglesworth) on 19th July—[Vol. 915, c.329]—is estimated at £31 million for a full year. The average percentage increase under the present pay policy is expected to be about 4½ per cent., but if that policy, including the £2.50 minimum, were to be strictly applied to Civil Service pension increases, the cost in the same period would be £39 million—that is, an extra £8 million. This is because 676W a 13.8 per cent. increase will mean less than £2.50 for some 220,000 of the 293,000 in receipt of Civil Service pensions. The effect of taking into account any increase in the State retirement pension could only be calculated at disproportionate cost because details of individuals who receive both a Civil Service pension and a State retirement pension are not readily available.
§ Mr. Arthur Lewisasked the Minister for the Civil Service whether he will give a detailed breakdown of the pensions increases being given to civil servants in December, showing the total number who will benefit, the number in each of the 10 top categories of pensions and their present rates, those within the medium or average 10 groups and those in the lower 10 groups; and by how much in cash these pensions will increase per week and in percentage terms as from 1st December 1976.
§ Mr. Charles R. MorrisApproximately 290,000 former civil servants or their dependants will receive a pension increase of 13.8 per cent. from 1st December next. Civil Service pensions cannot be categorised in the way implied by my hon. Friend, as each pension rate is individual to the officer concerned, and is calculated on the number of years of reckonable service and his terminal salary. There are over 150,000 pensioners receiving pensions of £1-£500 a year. The average increase for these pensioners will be about 66p a week. There are over 135,000 pensioners receiving pensions of between £501 and £5,000 a year; their average increase will be about £3.40 a week. There are fewer than 1,500 pensioners receiving more than £5,000 a year; their average increase will be about £16.20 a week.