§ Mr. Wrigglesworthasked the Minister for the Civil Service if he will make a statement on the result of the latest review of public service pensions.
§ Mr. Charles R. MorrisThe Government have now concluded this year's review of public service pensions. The pensioners concerned include former teachers, servicemen, nurses, policemen, firemen, local government workers, civil servants, MPs and many others.
The Government believe that it is right to protect pensions against inflation and that this principle, which has commanded general acceptance by the House and by successive Governments, should not be lightly abandoned because of short-term considerations.
The rate of inflation has been substantially reduced over the last 12 months and under the existing arrangements the percentage increases for public service pensioners in 1976 will be 13.8 per cent., which is less than that due next November for State retirement pensioners. This will mean an average increase of some £2.40 a week for the million or so public service pensioners concerned.
The Government have decided that in all the circumstances it would be wrong to modify the statutory requirements of the Pensions (Increase) Act 1971 or to interfere with the existing provisions for the protection of other pensions, not covered by the Act. I shall therefore be laying next month an Order according to the requirements of Section 2 of the Act authorising the necessary increases from 1st December next.