HC Deb 14 June 1977 vol 933 cc104-5W
Mr. Arthur Lewis

asked the Secretary of State for Social Services what the present retirement and other social welfare benefits just prior to the application of the recently announced increase will be worth if the general increase in the cost of living for the past six months is maintained for the next six months; and if he will give similar details taking account only of rent, heat, light, fares and the other necessities usually met by those in receipt of welfare benefits.

Mr. Orme

On the assumption that, in the 12 months from November 1976 to November 1977, the rate of increase in the general index of retail prices is the same as occurred between October 1976 and April 1977—the latest six-month period for which information is available—the estimated value of present benefits in November 1977, at November 1976 prices, would beRetirement pensions and other long-term national insurance benefits: Single person—£12.58. Married couple—£20.15. Sickness and unemployment benefit: Single person—£10.60. Married couple—£17.19.

As to the second part of my hon. Friend's question, the indices for pensioner households reflect the spending patterns, apart from housing, of pensioners who have at least three-quarters of their income in the form of state pensions. On the basis of those indices, and applying similar assumptions, the estimated value of retirement pensions in November 1977, at November 1976 prices would be: Single person—£12.95. Married couple—£20.37.

I am, however, quite satisfied that the actual increase in prices over the 12 months to November 1977 will be considerably less than that assumed in my hon. Friend's Question.