§ Mr. Foulkesasked the Secretary of State for Social Services if he will make a statement on the talks between the United Kingdom and Canada in December 1983 concerning indexation of pensions for Britons retiring to Canada; and if he will state the cost of any suggestions made by the Canadian Government.
§ Dr. BoysonOfficials from Canada and the United Kingdom met in London in August 1983 (not December) to discuss the provisions which would be desirable in any social security convention between the two countries. Important among these would be a provision for the United Kingdom to pay annual uprating increases of pensions to United Kingdom pensioners in Canada.
Such a provision would cost the United Kingdom an extra £32 million a year (at November 1983 rates). A provision requiring the United Kingdom to pay only increases awarded following the entry into force of the new convention would cost an estimated £2.5 million in the first full year although the annual cost would rise progressively to £32 million.
We cannot commit resources on this scale in the present economic situation. However, officials of the two countries are to draft the terms of a convention so that it can quickly be approved and implemented once the finance becomes available.
§ Mr. Foulkesasked the Secretary of State for Social Services if he will estimate the likely cost if British pensioners who have retired to Canada had remained in the United Kingdom and were (a) drawing supplementary benefit and/or housing benefit to which they might be entitled and (b) making use of the National Health Service.
§ Dr. BoysonThe supplementary benefit and housing benefit schemes and the National Health Service are part of the social protection available to residents of the United Kingdom. They are financed on this basis. No realistic assessment can be made of what call might be made on these services by pensioners living in Canada if they had remained here.