§ Sir William Clarkasked the Minister for the Civil Service what would be the extra cost to the Exchequer if index-linked pensions in the public sector were increased by (a) 14 percent. and (b) 8 percent. for the year 1981–82.
§ Mr. HayhoeThe cost of index-linking pensions in the nationalised industries falls on the relevant pension funds, 187W contributions to which are not a direct charge on the Exchequer. The cost to the Exchequer in the first full year of increasing public service pensions by the stated percentages in November 1981 would be of the order of (a) £380 million, (b) £220 million. These figures cover some 1.6 million pensions, principally from the Armed Forces, the Civil Service, the National Health Service, local government, teaching and the police and fire services.
§ Mr. Marlowasked the Minister for the Civil Service by what average percentage of gross Civil Service wages she would have to increase the superannuation contribution if such an increase were used wholly to pay for an increase of Civil Service index-linked pensions 1 per cent. above the rate of the Civil Service pay increase.
§ Mr. HayhoeIncreases in Civil Service pay rates for 1981–82 have not yet been settled. Pay reductions in respect of Civil Service pensions are related to liabilities expected to accrue in the long term and not to the rate of inflation in any particular year.
§ Mr. Marlowasked the Minister for the Civil Service if she will seek to limit the pensions of all civil servants so that those already in retirement do not get increases over and above the rates payable in the same grade currently retiring.
§ Mr. HayhoeMy hon. Friend's proposals will be borne in mind in the Government's consideration of the Scott report and reactions to its analysis and findings.