§ Mr. Patrick Jenkinasked the Secretary of State for Social Services if he will make a statement on the effect of pay restraint on pension scheme improvements in view of firms' uncertainty at the present time.
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§ Mr. HealeyI have been asked to reply.
It is part of the current understanding between the Government and the TUC that improvements in occupational schemes, or the introduction of new schemes, must count against the pay limit unless they are restricted to the minimum level necessary to contract out of the new State scheme to be introduced from April 1978. I have received representations from pensions interests requesting that a date be named for the relaxation of this restriction. I have replied that this will be discussed with the TUC in the course of the negotiations for the third round of pay policy. These talks will be starting shortly and the Government will report to the House as soon as there is anything further to announce on this subject.