HC Deb 26 November 1980 vol 994 cc100-1W
Mr. Alfred Morris

asked the Secretary of State for Social Services what would be the current amount of retirement pensions and all other benefits paid by his Department if the statutory link with earnings had been maintained; what is the loss to each beneficiary in consequence of the Government's decision to defer the current year's uprating from 10 to 24 November; what is the total saving, first, that will result in a full year from ending the statutory link with earnings; and, second, that will accrue in 1980–81 from basing the current year's uprating on a 54-week year.

Mrs. Chalker

This information will not be available until the increase in average, earnings between the 1979 and 1980 uprating dates is known.

However, for each 1 per cent. by which the rise in earnings was greater than the rise in prices over that period, retirement pensions would have been about 23p a week higher for a single person and about 37p for a married couple. Other long-term benefits would have been increased similarly. These 1 per cent. increases would have cost about £130 million a year extra.

If the rates of benefit which came into force this week had been paid from 10 November, each beneficiary would have received two additional weeks' benefit at the increased rate. In the case of retirement pensions, a single person would have received £7.70 more and a married couple £12.30 more. The total additional expenditure in 1980–81 would have been about £125 million.

For the 1979 and 1980 benefit rates I refer the right hon. Gentleman to my right hon. Friend's statement to the House on 27 March.—[Vol. 981, c.1673–8.]