§ 13. Mr. Roy HughesTo ask the Secretary of State for Social Security if he is considering restoring the index link between pensions and earnings.
§ Mr. ScottWe have no plans to restore the link between pensions and earnings. The key factor in considering pensioners' incomes is the total net income available. Our policies of protecting basic pension against price increases, ensuring that income from savings keeps its value, and encouraging the growth of occupational pensions have resulted in a 23 per cent. real terms increase in pensioners average total net incomes between 1979 and 1986.
§ 18. Mr. MacdonaldTo ask the Secretary of State for Social Security if he will estimate how much has been saved by abolishing the earnings link in pensions and linking it to the cost of living.
§ Mr. ScottThe additional public expenditure that would he needed in 1988–89 to uprate retirement pensions in line with earnings would be £3.7 billion.