§ 44. Mr. van Straubenzeeasked the Secretary of State for Social Services what was the average percentage rise in the rate of State retirement pensions which came into force on 12 November.
§ Mr. PrenticeThe rate of basic retirement pensions for single people and married couples increased by 19.5 per cent. from week commencing 12 November. But a retirement pension may be made up of a number of components, some of which were increased by different percentages. The percentage increase in an individual's pension would, therefore, depend on the number and type of components in payment. However, since the basic pension is by far the most significant part of a retirement pension, the average increase in all pensions would be in the region of 19.5 per cent.
§ 53. Mr. Foulkesasked the Secretary of State for Social Services if he will make a statement on the method of assessment of increases in the State retirement pension.
§ 63. Mr. Stallardasked the Secretary of State for Social Services if he will make a statement on the method of assessment of increases in the State retirement pension.
§ Mr. PrenticeThe Social Security Bill, which had its First Reading in this House on 29 November, provides that basic retirement pensions—and certain other long-term benefits—shall have their value restored annually at least in line with the general level of prices and not, as at 587W present, at least in line with the general level of earnings or prices, whichever is more advantageous to the pensioner. The additional earnings-related components of pensions will continue, as at present, to have their value restored in line with the general level of prices.
The amount by which pensions are up-rated in any year is normally determined shortly before the Budget Statement, and takes account of the expected increase in prices over the 12 months up to the proposed uprating date.