§ Sir S. McAddenasked the Secretary of Slate for Employment whether 54W he can provide a list of cases in which Government approval has been given to the regular adjustments over an indefinite period of wages or pensions in accordance with changes in the cost-of-living index; and what is current Government policy in that respect.
§ Mr. Harold WalkerMy right hon. Friend the then Secretary of State explained to the House on 23rd July 1975 —[Vol. 896, c. 686–8]—that, where current agreements involved forward commitments to make threshold or indexation payments and the first payment had already been made before 11th July 1975, such commitments could continue to be honoured in full; however, I am aware of only two major agreements—covering some 12,000 employees—and three lesser agreements under which employees are still receiving indexation payments. As for pensions, my right hon. Friend also stated that the arrangements for payments to pensioners under already existing schemes might continue unchanged; in addition, from 1st August 1977 improvements in pension provision have not been subject to pay policy. Other indexation arrangements are not consistent with the guidelines.