§ Mr. Matthew BanksTo ask the Chancellor of the Exchequer what plans he has to increase public service pensions from April 1997. [7454]
§ Mr. WaldegraveUnder the legislation governing public service pensions they are increased annually by the same percentage as state earnings-related pensions—additional pensions. My right hon. Friend the Secretary of State for Social Security announced on 26 November,Official Report, columns 207–20, that additional pensions will be increased by 2.1 per cent., in line with the annual increase in the retail prices index up to September. Public service pensions will therefore be increased by 2.1 per cent. from 7 April 1997. Pensions which have been in payment for less than a year will receive a pro rata increase.