§ Mr. Robin CookTo ask the Secretary of State for Health (1) what was the date on which the announcement was made of an error in the calculation of the retail prices index which led to an underpayment of public service pensions; and what was the total amount due to national health service pensioners as a result of the error at that date;
(2) if he will give the (a) date on which the National Health Service Pensioners Trust was established; (b) the date on which the National Health Service Pensioners Trust deed was approved by the Charity Commissioners; (c) the amount of money which has currently been paid to the trust with approval of his Department; and (d) the date of those payments;
(3) if the amount vested in the National Health Service Pensioners Trust was calculated at 1987 prices or current cash prices; and if he will make a statement.
§ Mr. WaldegraveThe announcement of an error in calculating the retail prices index between February 1986 and October 1987 was made on 11 December 1987 at column 283 by my right hon. Friend the then Secretary of State for Employment and on 18 December 1987 at columns1376–84 by my right hon. Friend the Minister for Social Security and Disabled People. The underpayment on all retirement pensions and long-term benefits at that date was estimated at £109 million. The amount attributable to national health service pensioners was subsequently estimated as £1.13 million (England and Wales) and £180,000 (Scotland). This was based on an 574W estimate of the expenditure on national health service pensions in the years when the underpayments occurred. From April 1989 all pensions were adjusted to make good the effect of the error.
On 3 May 1988 at column 400 my right hon. Friend the then Paymaster General announced to the House how public service pensioners would be able to benefit through a donation to public service charities. Following a feasibility study on how best to provide for national health service pensioners, the Charity Commissioners approved the trust deed for the National Health Service Pensioners' Trust on 26 November 1990. The trust was established on 4 January 1991 and a payment of £1.311 million was made to the Trust on 28 March 1991.