18. Mr. John P. SmithTo ask the Secretary of State for Social Security what action he intends to take to compensate those who are currently losing because of the disparity between inflation and the uprating increase.
§ Mr. MooreIn April, benefits were fully uprated in line with the movement in prices over the 12 months to September 1988. In the same way, the next uprating will take account of the movement in prices between September 1988 and September 1989. The use of the historic method for uprating is much fairer than the previous forecasting method. A switch to the forecasting method in 1976 meant that pensioners were not compensated for the price increases of 6 per cent. between March 1975 to November 1975. That meant pensioners got over £1 billion less, in today's prices, than they would have done.
§ 41. Mrs. ClwydTo ask the Secretary of State for Social Security what action he intends to take to compensate those who are currently losing because of the disparity between inflation and the uprating increase.
§ Mr. Peter LloydI refer the hon. Member to my right hon. Friend the Secretary of State's reply to the hon. Member for Vale of Glamorgan (Mr. Smith) earlier today.