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War Pensions And Allowances

Volume 473: debated on Tuesday 28 March 1950

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2.

asked the Minister of Pensions the total cost to the Exchequer, to the nearest convenient date, of improvements in war pensions and allowances, including pensions and allowances to dependants, made since August, 1945; the annual cost at present of continuing these improvements; and what proportion does the annual cost of these improvements bear to the total annual cost of war pensions and allowances.

The total cost to the Exchequer to 31st December, 1949, of the improvements in war pensions and allowances, including pensions and allowances to widows and dependants, made since August, 1945, is approximately £35,250,000. The annual cost at present of continuing these improvements is approximately £11,500,000. This represents just over 14 per cent. of the total annual cost of war pensions and allowances. These figures are confined to pensions and allowances and therefore do not include the cost of motor cars.

Will not the right hon. Gentleman agree that the advantage of these increases has been largely outstripped by the fact that the Government have reduced the value of the people's money since 1945?