§ Mr. Arthur Jonesasked the Minister for the Civil Service if he will give examples of public service pension increases effective under the Pensions (Increase) Act 1971 since its implementation; and what is the effect of the Act in percentage terms on pension levels overall including the increase payable subsequent to 1st December next.
§ Mr. Charles R. MorrisThe Pensions (Increase) Act 1971 brought all pensions which had come into payment in or before 1968 up to the level of the original460W purchasing power as at 1st April 1969. The Act applied an increase of 18 per cent. to pensions beginning before 2nd April 1969 to bring them up to the level of purchasing power as at 1st September 1971. Since then, the annual reviews carried out under the Act have resulted in the following increases:
Year Percentage 1972 9.9 (covered 15 months) 1973 9.3 1974 16.5 1975 26.1 1976 13.8 Therefore a pension of £100 per annum as at 30th November 1971 would have been increased as follows:
Year, Percentage increase and Amount December 1972 9.9 £109.90 December 1973 9.3 £120.12 December 1974 16.5 £139.94 December 1975 261 £176.46 December 1976 13.8 £200.81 Thus, the percentage increases since 1971, including the 13.8 per cent, payable from 1st December next, total 100.82 per cent.
§ Mr. Arthur Jonesasked the Minister for the Civil Service what is the estimated cost of the increase of 13.8 per cent. effective from 1st December 1976 in public service pensions, including payments to widows, children and other dependants.
§ Mr. Charles R. Morris£114 million for the year 1st December 1976 to 30th November 1977.