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Commons Chamber

Volume 827: debated on Tuesday 30 November 1971

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House Of Commons

Tuesday, 30th November, 1971

The House met at half-past Two o'clock

Prayers

[Mr. SPEAKER in the Chair]

Oral Answers To Questions

Social Services

European Economic Community

1.

asked the Secretary of State for Social Services, whether he will announce details of the methods by which he intends to implement his proposals for the protection of pensioners from the effects of the proposed entry to the European Economic Community.

The Government will review the rates of pensions and related benefits at the appropriate time in accordance with our undertaking in the White Paper "The United Kingdom and the European Communities" (Cmnd. 4715).

In view of the present situation of old-age pensioners, would not the Minister accept that there is a need to do two things—first, to grant an immediate increase to pensioners in order to protect them from the effects of the proposed entry of Britain into the Common Market, and to protect them from the present inflationary trends, and second, especially in view of the reply given by the Prime Minister to my hon. Friend the Member for Birmingham, Northfield (Mr. Carter) on 16th November, to give adequate notice to old-age pensioners' associations of the methods that are to be used by the Government to protect pensions if the worst comes to the worst and Britain enters the European Economic Community?

These are questions which we shall have the opportunity to debate this afternoon. No possible increase due to entry into the Community can come before the middle of 1973, and that is the year in which the biennial review is due to take place.

Pensions

2.

asked the Secretary of State for Social Services what is his latest estimate of the percentage increase in the purchasing power of the national insurance pension, since the last but one increase in November, 1969.

As measured by the movement of the General Index of Retail Prices to October, 1971, the purchasing power of the standard rate of retirement pension for a single person is 2·4 per cent. higher than in November, 1969. For a pensioner over 80 the increase, including the new age addition, is 6·7 per cent.

Does not that first figure highlight just how inadequate in real terms has been the last increase in pensions? Will the Secretary of State allow hundreds of thousands of pensioners to spend this Christmas on the poverty line? Would he think again and bring forward substantial increases in their pensions?

That, again, is the subject of this afternoon's debate. The hon. Gentleman will know that we managed this time to do marginally better on the increase than the Labour Government did in 1969.

Would the right hon. Gentleman now give his estimate of when the value of the pension increase will have disappeared altogether? We suspect that it will have disappeared altogether in January and that from then on pensioners will be getting steadily poorer.

No, I will not make a guess. But the up-rated pension has always tended to lose value between up-ratings.

6.

asked the Secretary of State for Social Services how much of the £1 increase in retirement pensions is received by persons in receipt of supplementary benefit.

Single supplementary pensioners received an increase of 60p in total income, comprising £1 more in retirement pension and 40p less in supplementary pension.

Is the hon. Gentleman aware of the absolute despair felt by old-age pensioners when they see their money buying less and less? Does he appreciate that this much-vaunted £1 increase, which the Government have vaunted on so many occasions, is nothing more than a shoddy piece of window dressing? Why does he not give pensioners their full £1?

On the contrary, the hon. Gentleman must realise that there is a real increase in the purchasing power of the pension which was introduced in September. Supplementary pensioners have had the same increase as retirement pensioners, but they have had it in two instalments—one last year and one this year.

Order. I remind hon. Members that we shall be debating this matter for the rest of the day.

Disabled Persons (Vehicles)

3.

asked the Secretary of State for Social Services if he will consider extending the scheme of assistance with the cost of conversion of privately owned cars to hand control for disabled people, to include those who are unable to travel to their place of work on foot or by public transport in a reasonable period of time.

8.

asked the Secretary of State for Social Services if he is now in a position to announce a change in the type of motor vehicle provided for the disabled.

9.

asked the Secretary of State for Social Services whether he can yet state when he expects to complete his review on vehicles for disabled drivers.

The vehicle service review, considering the types of vehicle to be issued and the circumstances in which they may be issued, is very near completion.

I thank my hon. Friend for that reply. I ask him to remember that there are many people, particularly in rural areas, who are not sufficiently disabled to qualify for a conversion grant—when it would cost only about £50 to adapt a clutch—which means that they cannot get to a place of work twelve miles away and, therefore, that they have to suffer the terrible indignity and thorough demoralisation of not working or they have to pay for the conversion themselves. The Government ought to consider extending these provisions considerably.

The question of the more general provision of three-wheelers and possibly four-wheelers is included in the review.

Would the hon. Gentleman accept that his answer may be welcomed by some of those involved? Will he accept that I am encountering now—as I am sure are many of my hon. Friends and hon. Members—inquiries being made by people who come under the ambit of the review who are wondering whether something is about to happen, because it could certainly make their lives much more pleasant if there were some amendment to the scheme?

Certainly the main purpose of the review—I hope it will succeed in its objectives—is to increase the satisfaction of those at present using the service and to see in what way we can extend it.

Would my right hon. Friend say how near is "very near"? Surely he must know the approximate date? is it to be before Christmas or in the New Year? Could he give an assurance that before this new policy is announced there will be some consultation with the disabled drivers' organisations which will be so much affected by it?

"Very near" cannot be precisely quantified, and it is always dangerous to use the future tense in politics. I am well aware of the various needs and the views expressed by many interested parties.

I am glad to hear that the result of the review will be available at an early date, but has the hon. Gentleman ever attempted to estimate how much public money is wasted by failing adequately to help disabled people with their mobility problems? Would he agree that it is ludicrous that we should make things difficult for even severely disabled taxpayers who do not want to become supplementary pensioners?

Yes. All these very wide ramifications of disability and the importance of providing for mobility have been included in the review.

When the Minister has this review, will he be kind enough to consider retrospective payment of a grant? Many people receive a large bill, cannot pay it out of their accounts and need the money very quickly. Would the Minister consider trying in this matter so that the money can be paid quickly?

I should want to consider what the hon. Gentleman said when I see it in the OFFICIAL REPORT. Retrospection is a dangerous wedge to include in any financial undertaking.

I ask the hon. Gentleman the simple question whether he will publish in the OFFICIAL REPORT the existing criteria used by his Department for making financial provision for modifying existing vehicles so that we may try to analyse the anomoly which arises in these allocations.

The official forms on which application is made for assistance under the vehicle scheme are already available and set out all details under which assistance is available.

Medical Service (Complaints)

4.

asked the Secretary of State for Social Services what steps are being taken to reduce delays, apparent in some areas, in dealing with complaints made about medical services to executive councils.

Few complaints about avoidable delays have been made to my Department; but if my hon. Friend has any specific cases in mind, perhaps he would let me have particulars of them.

Is my hon. Friend aware that in the urban areas, particularly Greater London, considerable delays are occurring and the occasional delay is occurring in rural areas? A delay of nine or 10 months to settle one of these complaints is distressing both to the patient who is aggrieved and to the doctor who may suffer financially, socially and professionally.

I take my hon. Friend's point. A delay as long as that is exceptional and certainly should be queried. I am sure my hon. Friend appreciates that we have to balance the advantages of rapidity with the need to preserve a proper balance in the system and, above all, fairness to the parties involved.

When the hon. Gentleman is considering complaints about the medical services, would he take into account the fact that there are some areas of Scotland where doctors who are providing medical services finish their consulting hours before the men and women come in from their work? Will he give some instructions to executive councils that when there are complaints about this matter something will be done about it?

I will see that my right hon. Friend the Secretary of State for Scotland notes the hon. Gentleman's points.

Anti-Influenza Vaccinations

5.

asked the Secretary of State for Social Services how many people over 65 years of age received anti-influenza vaccinations last year; and if he intends to increase their numbers this year.

I regret that the information requested is not available. It is for the patient's doctor to decide whether to offer vaccination in any particular case.

If there is an outbreak of influenza this year, will the Minister take steps to avoid a repetition of the deplorable situation last year, when footballers, business men and Members of Parliament were offered vaccination before old people at risk?

We have forwarded the existing professional advice in a new note to general practitioners in Health Trends, pointing out the view taken by the professionals concerned as to the desirability and scope for special vaccination for the elderly.

Supplementary Benefits (Strikes)

7.

asked the Secretary of State for Social Services what has been the total cost to public funds of supplementary benefits paid to strikers and their families since the entry into force of the Social Security Act, and the average payment per family per week; and what were the corresponding figures for similar periods in each of the preceding five years.

Section 1(4) of the Social Security Act, 1971, which deals with payments made during strikes for strikers' dependants, did not come into force until 3rd November 1971. The total cost to public funds of larger strikes, of which special records are kept, between that date and 23rd November was £21,273 and the average payment per family £5·29.

I will, if I may, circulate details of the other figures asked for in the OFFICIAL REPORT, but my hon. Friend may like to know that the average yearly amount of supplementary benefit paid during November for the five years up to 1970 was about £124,000 and the average payment per family was just under £6 a week.

I will study the figures with interest. It may not be possible yet, but can my hon. Friend say whether there is evidence to establish that the estimate, given by my right hon. Friend at the time of passage of the Act, that it was likely to reduce the scale of subsidisation of strikes by the taxpayer, during their duration, by between one-third and 50 per cent. has turned out to be justified?

It is too early to be sure, as my hon. Friend himself suggested, but the figures already show a downward trend and there is also the happy fact that during this period—the second half of this year—there have been very few strikes of a length which has brought people into the possibility of getting supplementary benefit.

Will the hon. Gentleman dissociate himself from the sentiments expressed in the Question? Does he recognise that, through the family income supplement, the taxpayer is subsidising employers who are not paying a living wage to many workers? Does not he agree that families of strikers should not become involved because the fathers are fighting for a principle?

There is nothing wrong in the Question. My hon. Friend the Member for South Angus (Mr. Bruce-Gardyne) asked how an Act of Parliament was operating in practice and I have tried to give an answer. The hon. Gentleman mentioned the family income supplement. I remind him that many thousands of families are receiving substantial help which was not available previously.

While it is true that the period covered by this Question is too short to determine any trend—and the hon. Member for South Angus (Mr. Bruce-Gardyne) should have known that—is the Minister not aware that in so far as the Social Security Act hits at the wives and children of men on strike, we on this side are opposed to any proposition that strikes should be broken by starving out the women and children?

The hon. Gentleman knows that that was not the intention of the Act, which was to remove an entirely unjustified preference which strikers' families had over other families.

Following is the information:

1. The total amount of supplementary benefit paid out during larger trade disputes to strikers and their families, from the coming into force of the Social Security Act on 3rd November to week ended 23rd November. (No later figures are available.)

Amount Paid

Average Payment per Family

££
21,2735·29
2. Total amount of supplementary benefit paid out during disputes to strikers and their families during the November of each of the five years preceding the Social Security Act:

Year

Average Paid

Amount Payment per Family

££
19669,8295·21
196769,4766·62
196824,7753·65
1969199,8326·07
1970315,7155·67
3. The figures in paragraph 2 relate to the complete months of November. It is not possible without disproportionate work to isolate the three weeks represented by the figures for 1971. Direct comparison with the figures in paragraph I would not in any event be possible since the 1971 figures relate to larger strikes only, while the figures for previous years cover all strikes.

Cancer (Cytology Tests)

10.

asked the Secretary of State for Social Services how many women were in the greatest cancer-risk age group in the year 1970–71; and what proportion of these have had cytology tests in this time under the National Health Service.

I assume that my hon. Friend has in mind cancer of the cervix. The likelihood of developing this form of cancer increases sharply with age and women age 35 years and over are known to be most at risk. There are about 13 million women in this age group. Approximately 1,850,000 tests were made in 1970, of which about half were on women aged 35 and over.

Does not my hon. Friend agree that that is hardly a satisfactory answer? Is he aware that 6,000 women contract cervical cancer every year, that 3,000 of these die from it, and that almost all of them could be saved if some funds were allocated for yearly or even biannual tests? Will my hon. Friend assure me that he does not share the total indifference of his chief medical officer on this subject, who does not even deign to mention the subject of cytology in any part of his 1970 annual report?

I must immediately come to the defence of the chief medical officer. He has recently published two articles on cervical cytology in Health Trends, which is circulated free of charge to every general practitioner, and he has urged an increase in the number of women they bring forward for screening.

Is it correct that so much money has been spent on abortions that there is little left for cytology?

As the hon. Lady knows from her wide experience of medicine, the problem in cytology is the difficulty of persuading women that they need to come forward for screening.

On a point of order, Mr. Speaker. That reply was in no way an answer to my supplementary question. May I ask the hon. Gentleman whether he will now reply to it?

Too many times at Question Time Ministers get away with this sort of thing.

Will the hon. Gentleman bear in mind that Health Trends is no substitute for the chief medical officer's report and that we trust that this will not be repeated in future years? Secondly, will he authorise far greater publicity to encourage more women to use this excellent service, which is saving thousands of lives a year? Will he also not remain content with testing those at greatest risk? What about those at lesser risk? After all, the life of a lesser risk patient is just as valuable as the life of someone at greater risk.

The hon. Lady will have noted that half of the tests carried out in 1970 were on women under the age of 35 Publicity is a matter for the Health Education Council, which has plenty of funds and is very active. It is simply a problem of communication in making women who may not have immediate symptoms of which they are aware come forward for screening.

Re-Establishment Centres

11.

asked the Secretary of State for Social Services how many visits he has made to re-establishment centres since he took office.

Of the 13 centres, my right hon. Friend has visited one and I have visited two.

Will the hon. Gentleman consider increasing the frequency of these visits in order to give more publicity to the valuable work being done by the centres, which exist to bring the long-term unemployed man back to work? Would he emphasise particularly that for the whole of 1970 only 2,308 men attended the country's 13 centres? Does not this give the lie to the idea, fostered on many occasions by the Conservative Party, that half the nation are no-good layabouts? Is he satisfied that the centres are receiving their fair share of resources in premises and skilled and professional personnel?

I am grateful for what the hon. Gentleman said about the centres. They do valuable work, particularly in trying to help those who have got out of the normal routine of work to get back into that routine. I assure him that my right hon. Friend and I will always visit them as opportunity arises.

Abortion

12.

asked the Secretary of State for Social Services what advice he gives to general practitioners who find that consultant gynaecologists in their local hospitals are refusing to accept their patients whom they recommend for termination of pregnancy.

In general I would expect general practitioners confronted with such problems to take them up with the local hospital authority or with the appropriate regional hospital board. If an individual patient is referred back to her own doctor it will then be for him to consider the situation and make any further arrangements.

Is the right hon. Gentleman aware that in the West Midlands many general practitioners know that there is no point in referring their women patients to consulant gynaecologists because they refuse to carry out these operations? Is he also aware that some gynaecologists in different parts of the country are blackmailing women into agreeing to sterilisation before they will agree to carry out the termination operation? Does not he think that this is a disgraceful state of affairs, which causes great and needless distress to very many women patients? Will he urgently look at this matter, because it is a very serious situation?

Without accepting any specific allegation which the hon. Lady made, I would reply that these are precisely the sort of questions which the Lane Committee exists to try to settle.

Consultant Distinction Awards

13.

asked the Secretary of State for Social Services whether he will publish the names of recipients of consultant distinction awards and also publish the reasons for each individual award.

I would not make changes in the present system without strong evidence that they are desirable and have the support of the professions concerned.

Would not the right hon. Gentleman agree that, as millions of pounds of public money are used to finance consultants' merit awards, the taxpayer has a right to know which doctors have been given awards and on what grounds? Why are Parliament and people not allowed to know the reasons behind these awards? Why is the whole matter shrouded in secrecy?

In the very early days of the National Health Service, it was considered that it was to the advantage of the public that these awards, with the names of those receiving them, should not be made known, because patients might draw fallacious conclusions from them. A review body has confirmed that judgment. The B.M.A., the main professional organisation of the medical profession, is about to canvass once again the views of its members on the whole subject.

If the right hon. Gentleman will not agree to end the nonsense of secrecy which has been allowed to grow up around consultants' merit awards, will he at least consider merit awards for State registered sisters who have reached the highest maximum nursing pay by their middle twenties and must spend the rest of their nursing careers without being able to get any advance unless they go into administration? Will he consider having merit awards for good nurses?

That is another question and it is not on the specific point raised by the hon. Member for Halifax (Dr. Summerskill).

Consultants (Leicester)

15.

asked the Secretary of State for Social Services why a wait of three months is necessary in Leicester city or county before a patient can be interviewed by a consultant under the National Health Service.

Urgent cases are seen without delay but because of shortage of facilities due to be remedied by hospital building developments, non-urgent cases in three surgical specialties may at present have to wait for 12 weeks or more for an appointment.

Is my hon. Friend aware, so long is the wait for a National Health Service consultation, that many of my constituents are forced to consider having a consultation privately? This practice can do nothing but bring the National Health Service into disrepute.

My hon. Friends knows that urgent cases always receive immediate attention. It is always open to the general practitioner to recategorise as urgent a case which was not urgent if it develops through waiting.

In many specialties the waiting time is very long and very upsetting for the patient. Is the hon. Gentleman aware that we on this side of the House are more and more conscious of the gradual breakdown of the National Health Service and of the growing attractions of private consultancy for that reason?

We regret all delay. As I said, in Leicester the delay is confined to three specialties. In other specialties, the waiting is a great deal less—indeed, better than in many other parts of the country. The situation will improve when building development now in hand is completed.

On a point of order. In view of the unsatisfactory nature of that reply, I beg to give notice that I shall seek to raise this matter on the Adjournment.

Retirement Pensioners (Deputation)

16.

asked the Secretary of State for Social Services when he last received a deputation of retirement pensioners.

I received a deputation from the National Federation of Old Age Pensions Associations on Wednesday, 27th October, 1971.

The right hon. Gentleman will be aware of the great anxiety among pensioners about the future, especially with winter drawing on, and that they find it very difficult to believe the figures being given by the Government to show that they are better off now than they were last year. Will he not take advantage of today's debate to announce a new initiative with regard to the care of the elderly, on similar lines to that announced by President Nixon today, with a view to discovering the true nature of the needs of old people so that his Department can do something to meet some of the anxieties and make elderly people look forward to retirement instead of dreading it?

That is more for the debate today, but I accept that the pensioners who came to see me convinced me that they need an assurance about the future.

Supplementary Benefit (Disregards)

17.

asked the Secretary of State for Social Services what plans he has to raise the level of disregards for people in receipt of supplementary benefit.

Is the Minister aware that that is the same answer that I received about this time last year? I have no reason to expect that it would be different from other years. On the basis that, in answer to earlier Questions, his right hon. Friend has made it clear that they will be starving the old-age pensioners into submission this winter, does he not realise that the Government could retain a little credibility by raising the disregards, particularly for those getting some kind of industrial supplementary pension? For instance, is he aware that he would help the 20,000 miners who have lost supplementary benefit and who, when the pension was increased to 30 shillings, lost the 10 shillings on the supplementary benefits? On the basis of the 25 per cent. inflation since the disregards were last increased, is it not time that they were altered?

Since the hon. Gentleman was given that answer 12 months ago, £600 million has been made available to increase pension and other benefits. My right hon. Friend will keep these disregards under review. I must, however, ask the hon. Gentleman to realise that the best way of helping those in need is by putting up pensions.

Attendance Allowance

18.

asked the Secretary of State for Social Services how many applications for attendance allowance in respect of severely disabled people have been approved; and if he will make a statement.

24.

asked the Secretary of State for Social Services how many people he estimates will receive the new attendance allowance.

31.

asked the Secretary of State for Social Services what is, at the latest available date, the number of applications received, granted and still under consideration, respectively, for the new attendance allowance for disabled persons.

44.

asked the Secretary of State for Social Services whether he is satisfied with the progress made in the development of the attendance allowance; and if he will make a statement.

46.

asked the Secretary of State for Social Services how many people are expected to qualify for the constant attendance allowance; and how many successful claims have been registered to date.

51.

asked the Secretary of State for Social Services whether he will make a statement about the introduction of the constant attendance allowance.

66.

asked the Secretary of State for Social Services when he intends to extend the attendance allowance for disabled people to cover a wider range of disablement.

71.

asked the Secretary of State for Social Services what proportion of applications for attendance allowance in respect of severely disabled people has been successful; if he will publicise the appeal procedure; and if he will make a statement.

Over 95,000 claims had been received up to 23rd November. Of these, about 44,000 had been successful, nearly 21,000 were rejected subject to the right to apply for a review of the decision and some 30,000 were still under consideration. The awards up to that date were 32,000 to adults and 12,000 to children. New claims are still coming in at the rate of several thousands a week.

By 6th December, the starting date for payment, the number of awards will be within reach of the 50,000 we originally estimated, but the number who finally receive the allowance when all these outstanding claims or applications for review have been considered will be substantially greater.

I think the House will agree that this is a highly satisfactory outcome so far, and one which reflects great credit on the Attendance Allowance Board, the general practitioners and other doctors whose help they enlisted and, may I add, the officers concerned throughout my Department, all of whom have worked hard and enthusiastically. I cannot at this stage say anything about the timing of further developments.

While thanking my right hon. Friend for that encouraging reply, may I ask him whether, in the light of the experience gained by his Department in assessing these applications, he will consider widening the qualifications for eligibility to include some of the very severely disabled people who are excluded at the moment?

We have all the time described this as the first stage, but I cannot today go further than that.

While that is an encouraging start, could my right hon. Friend say, in respect of the applications for children, what the percentage of success has been compared with the overall figures he gave a moment ago?

The overall success rate, to give the background, is 69 per cent. The success rate for children has been 82 per cent.

Is the Minister aware that there are large numbers of severely disabled people who need extra financial assistance but who do not qualify under the present attendance allowance? When will he be able to announce an extension of the range of the allowance to cover the new series of disabled?

When embarking for the first time on trying to help the severely disabled, the House and the Government recognised that we would have to do it by stages. I cannot give the answer today.

Can my right hon. Friend say when he is likely to be able to relax the day-and-night rule, in particular, on these allowances?

My hon. Friend has put again, rather ingeniously, and in another way, the question put by two other hon. Members. I cannot answer that.

While I appreciate the right hon. Gentleman's point about the need for attendance allowance to get under way, will the right hon. Gentleman not agree that a tremendous number of families are involved in this? In my own constituency three cases have been reversed on appeal. Would he agree that it is difficult to appreciate why certain categories have to appeal in any case? I can give an example from my own constituency, that of a lady who lost both legs and had three strokes, who had been turned down for constant attendance allowance.

I hope that all hon. Members who come across cases which they feel are anomalous will advise constituents to ask for a review by the Board. We are faced with the inevitability of varied standards by general practitioners up and down the country. That is why we want to encourage reviews of any marginal cases. The Board has so far dealt with 4,100 reviews, of which 83 per cent. have been successful.

Is my right hon. Friend aware that the pattern of acceptances and rejections, particularly for mentally handicapped children, in some areas is bewildering and that a large percentage have had to be submitted for a second time? Can he make it known that these second applications may succeed and try to eliminate the need for them?

I do not see how I can eliminate the need for them when we are bringing into payment a new benefit which depends ultimately on a combination of objective and subjective criteria and when the first line of agents of decision consists of a mass of intensely hard-worked general practitioners.

How soon will the Minister be able to remove the condition that severely disabled people should need constant attention, day and night? This is an abysmal condition and unduly restrictive. Can the Minister give these allowances to those who may require attention during the day?

Even to the hon. Gentleman I cannot give the answer that he and many other hon. Members wish to have. I am sorry.

Is my right hon. Friend aware that his Department, on great humanitarian grounds, have already overruled the original negative decision and given people this attendance allowance, notably Mrs. Gregory in my constituency—an allowance originally refused. We are truly grateful.

I do not normally refuse any expressions of gratitude, but any credit must go to the Attendance Allowance Board, which is entirely independent.

Is the right hon. Gentleman aware that there have been many disturbing cases of refusal of entitled applicants being reversed only after strong representations from their Members of Parliament? Is it not time that we had an urgent review of procedure?

That is entirely unwarranted. The Attendance Allowance Board is composed of devoted individuals who have very busy professional lives of their own and who have made time to carry out this relatively invidious task. They do not need strong representations from Members of Parliament; they simply need names of constituents whose cases need reviewing.

Day Nursery Service

19.

asked the Secretary of State for Social Services what encouragement he is giving to local authorities to expand the day nursery service.

As the available resources and the demands of other services permit I am continuing to recommend loan sanction for day nurseries where the majority of the children for whom they are intended are in special need of care. I estimate that new expenditure approved this financial year will be up by nearly a third compared with last year. This is a large increase from admittedly a rather modest level.

Is the right hon. Gentleman not aware of the fact that the recent small survey carried out by Sonia Jackson backs up evidence produced by the late Dr. Simon Yudkin and others eminent in this area, namely, that the complete lack of day nurseries and childminding facilities in the country means that large numbers of pre-school children are being looked after in totally inadequate and even dangerous conditions? Merely catering for those children in special need, as he says, does not meet this urgent problem. We need an immediate expansion in day nursery schools.

I do not need convincing of the need for more services for the under-fives. That is why I have asked the voluntary bodies concerned to submit their views to me, and why the Government seek to expand the appropriate services, within the resources available.

Family Income Supplement

20.

asked the Secretary of State for Social Services if he will carry out a survey to establish what sort of families who are eligible for help under the Family Income Supplement Act have not claimed their entitlement, and why.

At my request the Office of Population Censuses and Surveys conducted a survey in September in which a number of respondents to recent Family Expenditure and General Household Surveys were reinterviewed with a view to obtaining this information. I expect to receive the results shortly.

While thanking the right hon. Gentleman for that reply, and expressing the hope that the survey will produce the results which the Question was intended to produce, will the Secretary of State accept that nearly 100,000 out of the 185,000 families estimated to be eligible for F.I.S. have not claimed it? Is he aware that many of us are deeply concerned that among those 100,000 are the most needy people?

If my original estimate were correct the hon. Gentleman's figure would follow. What the House must recognise is that a much higher percentage of those whom we expected to be entitled to £2 a week or more have received awards. The sharp short-fall has been in those entitled to relatively small awards. We regret this, however, because even with the small award, the pass-book that goes with F.I.S. would have given those families automatic free health and sickness benefits.

Can the right hon. Gentleman tell us the types of reason for which applications for F.I.S. are turned down?

I have answered this before. Two-thirds are turned down because their earnings are too high and one-third because they are not technically in full-time work.

Can the right hon. Gentleman tell the House what proportion of those receiving family income supplement are civil servants or public employees and what proportion of their applications are successful?

It is a good question, to which I cannot give the answer. If the hon. Lady likes to put down a Question, I will try to find out.

Poor Persons In Need

21.

asked the Secretary of State for Social Services if he is satisfied that reorganisation of the social services since he was appointed is working to the satisfaction of the poor, and meeting their need; and if he will make a statement.

Yes, Sir. As regards cash benefits I would refer the hon. Member to the recent substantial uprating, achieved for the first time without any increase in National Insurance contributions by the low paid, and the introduction of family income supplement and selective improvements for the chronic sick and the over-80s. But the reorganisation of local authority social services into Seebohm departments and the greatly increased load on their staffs due to Government pressure to help neglected groups is causing unavoidable transitional difficulties and revealing deficiencies in services in some cases.

Is the right hon. Gentleman aware that my main concern, like the editorial in today's Evening Standard, is for the old in need? Is he aware that I welcome his recently-announced extra provision for hospital facilities for the old and mentally sick? Is he further aware that there are still big gaps in services for the old in need and the disabled at home? Will he, first, pressurise local authorities into using their powers on behalf of the disabled and, secondly, pressurise other local authorities into seeing to it that the old apply for financial help where they are entitled to it, and especially for heating grants?

At a certain stage pressure might become counter-productive. Local authority social service departments are coping with a massive reorganisation and the requirement by Government to try to make good the short-fall of generations in dealing not only with the elderly but with the mentally ill, the mentally handicapped and the physically disabled. It is a huge task and there are bound to be deficiencies.

Earnings Rule

22.

asked the Secretary of State for Social Services having regard to discontent among pensioners, continuous inflation especially affecting food and fuel, and levels of unemployment, whether he will raise to £15 per week the maximum under the earnings rule which a pensioner may earn, and £30 per week for man and wife, before retirement pensions are mulcted; and what other plans he has from 1st January, 1972, for bringing up to date the earnings rule.

The earnings rule limits were raised substantially last September. Further changes are not contemplated at the moment.

Have not prices and wages overtaken this level of £9·50 of today and would it not be more realistic to allow these people to earn £15 a week from 1st January, as this would have a proper relationship to the correct level of wages and prices? Have we to wait another 12 months before it can be adjusted?

No, Sir. Neither earnings nor prices have overtaken the figure. The increase was no less than £2. In addition, the maximum permitted earnings of a wife of a retirement pensioner, being herself under the age of 60, are now £9·50, in comparison with only £3·20 before September. These are substantial improvements.

Nurses (Pay)

23.

asked the Secretary of State for Social Services what is the monthly gross pay of a fully qualified State registered nurse, also fully qualified in midwifery, on the basis that she is living outside the hospital.

The monthly gross pay of a qualified nurse or midwife depends on her grade and seniority. For nurses it varies from £84 at the minimum of the staff nurse scale to £140·50 at the maximum of the ward sister scale. For those practising midwifery the corresponding figures are £86·50 and £140·50.

Does the hon. Gentleman recognise that these figures compare extremely unfavourably with average industrial earnings today and that this is one of the principal reasons for the decline in the quality of the Health Service in that these girls, dedicated as they are, know that they are being exploited by the community at large? When are the Government to take some initiative and pay these girls the money to which they are entitled?

The increase in nurse recruitment in 1970 was the largest we have known. The Whitley Council is about to receive a further pay claim and the proper negotiating machinery will then be put into operation.

Northern Ireland

Q1.

asked the Prime Minister whether he will pay an official visit to Northern Ireland.

Q9.

asked the Prime Minister whether he will pay an official visit to Northern Ireland.

I would refer the hon. Gentlemen to the answer I gave last Tuesday to a similar Question from my hon. Friend the Member for Belfast, South (Mr. Pounder).—[Vol. 826, c. 1133.]

Is the right hon. Gentleman aware that at a time of crisis the British people expect their Prime Minister to be in the thick of things and not skulking behind others? Is he further aware that although he may have scored a success conducting the London Symphony Orchestra last week, the country would think much more of him if he conducted a tour of Northern Ireland?

I explained the considerations to be taken into account in this matter when I answered a previous Question. Many people have differed from my views and no doubt will do so in the future, but I do not think that many people have questioned, in my service to my country, my courage.

Will the Prime Minister state what representations he has made, or is making, to the Northern Ireland Government about the recently-passed Payments for Debt Act which, as retrospective legislation, clearly contravenes the European Convention on Human Rights of which Her Majesty's Government are a signatory? Secondly, is he aware that by depriving the old, the sick and the disabled as well as the unemployed of up to half their income it is causing, provocatively so in the present situation, immense hardship?

This is a matter within the scope and power of the Northern Ireland Government. Those who feel aggrieved have an easy remedy, which is to go on with their normal payments.

As my right hon. Friend—and the Leader of the Opposition—have reaffirmed their adherence to the Ireland Act, 1949 would he consider a referendum in Northern Ireland to give the people there an opportunity of stating whether they wish to remain part of Britain or to become part of Southern Ireland? Would this not have an additional advantage in that if the decision can be taken and clearly seen, it can remove this matter from politics for a generation or more?

I do not think that the question of Northern Ireland becoming a part of the Republic is an issue at the moment and therefore the question of a referendum does not arise.

Is the right hon. Gentleman aware that, serious though the position is, and irrespective of whether he goes to Ireland, he ought to try to convey to the people of Ireland on all occasions the overwhelming belief in this country that there is no problem in Ireland that cannot be settled by peaceful solution and that there is certainly no problem in Ireland that is worth the loss of life of one of our soldiers or an innocent Irishman?

I entirely agree with the hon. Gentleman and I have always done my best to do as he says. In particular, the fact that we had the first meeting of the three Prime Ministers for 50 years and were able to sit round a table and discuss our differences is a clear indication of that. It also seems that if we, with considerable differences between us, can have discussions covering an entirely open agenda in the way we did, then surely those in Northern Ireland who are concerned with this problem, despite their differences, can similarly get round the table.

Textile Industry

Q2.

asked the Prime Minister if he is satisfied with the co-ordination between the Departments of Trade and Industry and Employment on the problems of the textile industry; and if he will make a statement.

Yes, Sir. The two Departments work closely together both at headquarters and in the regions.

Is the Prime Minister aware that, although he may be satisfied, the people of Lancashire are far from satisfied? The position is desperate, with the latest figures showing that as a percentage of consumption, imports represent about 55 per cent. compared with 15 per cent. in the United States. Bearing in mind the current serious unemployment in the area, is the Prime Minister aware that the Textile Council has recently found that a cut of 10 per cent. in those imports would provide 4,000 to 5,000 additional jobs, and will he reconsider the Government's whole policy of quotas and marks of origin?

This policy was, of course, the policy of the previous Administration. The Act was passed by Parliament under the previous Government, and it was the hon. Gentleman's Administration which made the changes of which he is now complaining. My hon. Friend the Under-Secretary of State—[Interruption.]—if the hon. Gentleman wishes his views to be taken seriously he should accept responsibility for his own Government's policies. As my hon. Friend the Under-Secretary of State for Trade and Industry said last night in the Adjournment debate, the questions which the hon. Gentleman has raised are being followed most closely, and special monitoring machinery has been set up by the Government to ascertain the facts so that action can be taken.

Following his much-valued visit to the Lancashire/Cheshire border recently, the Prime Minister will be aware of the distress caused by the closing of so many mills. Is it not wrong that the marking of cloth imported into this country should be abolished?

The Secretary of State for Trade and Industry is at this moment considering requests from the industry for special orders to be made under Section 8.

Will the Prime Minister say what action he is taking following his meeting with both sides of the textile industry during his visit to Manchester last month?

As I have just said, one issue is the question of the special markings, and my right hon. Friend the Secretary of State for Trade and Industry is now considering the requests which have been made by the industry. The Under-Secretary of State last night dealt with the introduction of tariffs, which are due to come in on 1st January, and this will undoubtedly benefit part of the industry. There is then the question of the disruption which may arise after the change-over, and the special monitoring machinery is being set up to deal with this aspect.

Unemployment

Q3.

asked the Prime Minister what replies he gives to those who write to him on the subject of unemployment amongst the 55 years and over age group.

The great majority of such correspondents are concerned with individual cases, which I ask the Department of Employment to follow up.

Is the Prime Minister aware that this category of unemployment accounts for approximately one-third of the total and that within that total 40 per cent. have been unemployed for a year or more? What positive proposals has he to remedy this situation, since he must realise that without such action many of these people will never again be employed?

The actual figures are as follows: In 1971 the proportion was 22·7 per cent. The corresponding figure in 1967, four years ago, was 22·8 per cent. This is a considerable problem but it is not a problem which is increasing proportionately; it remains about the same. The special action which is being taken is that my right hon. Friend the Secretary of State for Employment has introduced special training schemes so that new skills can be acquired where possible and people can be better equipped for jobs.

Is the Prime Minister aware that this problem is worse in small seaside towns? In 20 towns over 10 per cent. are unemployed, a quarter of whom are in the 55-and-over age group. Could a special committee be set up to look into this serious problem?

I am prepared to ask my right hon. Friend to examine this special problem in seaside towns to see whether additional action can be taken there. Those people will be covered to some extent by the training arrangements which I have described.

Will the Prime Minister make a statement about the report in two leading newspapers that the Government intend to take action against unemployment by use of the regulator? Is it not intolerable that this statement should come from Rome, and is it not unfortunate that uncertainty should be created and that there should be a loss of sales by the inevitable anticipation of future measures?

The hon. and learned Gentleman should have sufficient experience of Government and of the Press not to believe what he reads in newspapers.

The Prime Minister must inform us a little further. Two of the most serious papers, The Times and the Financial Times, today had lead stories, dated from Rome where the Chancellor of the Exchequer is, announcing that the regulator would be used later this week. This is unprecedented. We have become used to having Budgets or mini-Budgets once a fortnight, but this degree of uncertainty is unprecedented. The country and the House are entitled to know from the Prime Minister whether we are to expect a statement on economic measures on Thursday of this week or early next week.

The right hon. Gentleman knows perfectly well that Press speculation is by no means unprecedented. He will also be aware that a variety of economic journals have been proposing a variety of actions. When the Chancellor of the Exchequer has a statement to make about any economic matter, he will make it in the House of Commons.

If, as the Prime Minister says, this is pure speculation, is he prepared to deny the two lead stories in The Times and the Financial Times?

I will not deal with speculation of any kind at any time, any more than the right hon. Gentleman did when he was Chancellor of the Exchequer.

Longford, Middlesex

Q4.

asked the Prime Minister if he will pay an official visit to Longford, Middlesex.

Is the Prime Minister aware that a few weeks ago the right hon. Member for Wolverhampton, South-West (Mr. Powell) visited Longford, a few miles from my constituency, to make, yet again, a demagogic, racialist speech aimed at my constituents seeking, one assumes, to turn many of them white with fright. Since in this speech, which received wide publicity—although it was not handed out from the Tory Central Office this time—the right hon. Gentleman accused the Government of back-tracking on Conservative policy, and since in a cowardly way he accused Home Office officials of issuing falsified monthly figures, will the Prime Minister reconsider his answer and come either to Longford or to Southall to explain the Government's true position?

I have no responsibility for such matters, and it is an abuse of Question Time.

Is the Prime Minister aware that this is the second time that a Privy Councillor has accused a Government Department of issuing false statistics? Cannot civil servants be protected from this sort of allegation?

I have repeated constantly in the House that if any hon. Member, a Privy Councillor or otherwise, has any complaint to make and sends me the information, it will be inquired into. I have never received such information.

Pakistan (Commonwealth Membership)

Q5.

asked the Prime Minister if he will now seek to invite to a special meeting the heads of all Commonwealth countries other than Pakistan, with a view to expelling Pakistan from the Commonwealth and to the Commonwealth recognising Bangla Desh as a free and sovereign State.

No, Sir. Other Commonwealth Governments share our concern about the consequences of the situation in East Pakistan, but a meeting on the terms proposed by the hon. Member would contribute nothing towards a resolution of this grave problem.

Is the Prime Minister aware that the present fighting is born of the Indian Government's despair at the failure of the world Powers to take positive action? Is it not time for the Government to give a lead to the world Powers in this direction? Does not the Prime Minister realise that the independence of Bangla Desh is now inevitable and that, therefore, self-interest comes in line with the moral imperative to take this initiative?

As I understand it, the Indian Government have no desire that any action should be taken in the United Nations or elsewhere. What is more, the Secretary-General of the Commonwealth took an initiative with both countries and it was rejected.

I do not know about Bangla Desh, but is not a Question like this absolute balderdash? Should not the Commonwealth be trying to get together to resolve this matter with Pakistan rather than kicking Pakistan out of the Commonwealth?

Many members of the Commonwealth have been in direct contact both with Mrs. Ghandi and with President Yahya, and we have all been endeavouring to find a way of resolving these difficulties. I am sure that is the best way of going about it.

Will the right hon. Gentleman prod his right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs to get the United Nations to have another go? There seems to be a reluctance to touch the United Nations, as though one would get an electric shock from doing so.

We have encouraged various United Nations activities at different times during this trouble, particularly those concerning the refugees. On the other hand, it is perfectly legitimate to hold the view, as many countries do, including the two countries concerned, that to have a discussion about this problem in the Security Council would not be a way of resolving tension but might indeed increase it.

Did not the hon. Member for Cornwall, North (Mr. Pardoe) say, in effect, that India's patience is exhausted? Is this the proper attitude for any Commonwealth country to take? Is it not also the case that there is no procedure for expulsion from the Commonwealth, and that in East Pakistan there is no separate sovereign State satisfying any of the criteria for international recognition?

I agree with my hon. Friend on the latter part of his supplementary question. We must recognise the great social stresses and strains which are produced by nine million refugees in India. The Prime Minister of India has undoubtedly stood firmly against pressures to try to seek a solution of these problems by force.

Since the United Nations has difficulties in considering this matter, does not the Prime Minister think that the Commonwealth could be a useful forum in which to discuss the great problems caused by civil war between Pakistan and East Bengal? Does not he also think that the Commonwealth Declaration, which was signed by all Commonwealth Governments in January this year, should be applied to East Bengal, as indeed in every Commonwealth country?

I should not like to give a view about the last part of the question. I did not exclude action by Commonwealth countries. That is going on all the time. What I said was that I did not think that a formal meeting of the Commonwealth would be the best way to solve these difficulties. Individual heads of Governments of Commonwealth countries are in touch with me, and many of us are in touch with both the Prime Minister of India and the President of Pakistan.

Questions To Ministers

On a point of order. May I seek your guidance, Mr. Speaker, on a new situation which has arisen over the answering of Questions. The House has recently decided that if an hon. Member puts down two oral Questions they should be split so that more hon. Members have an opportunity to put supplementary questions. It is not within the competence of the Chair to tell a Minister how to answer Questions, but if a Minister decides to answer several Questions together—for example, Nos. 1, 2 and 51—an hon. Member may have an opportunity to ask two supplementary questions, whereas an hon. Member who has a Question down before No. 51 is denied the opportunity of putting a first supplementary question. I seek your guidance on how to ensure that an hon. Member gets one Question answered before another hon. Member gets a second Question answered.

Further to that point of order. I also need to seek your guidance, Mr. Speaker—[HON. MEMBERS: "Hear, hear."]—of course I need to seek your guidance; I am always seeking it. Question No. 79 in my name appears on the Order Paper today to the Secretary of State for Employment. It was tabled by Me as a Question to the Prime Minister about how many deputations he has received. I see no reason, and the Table Office saw no reason, why it should not have been answered by the Prime Minister. I wished to ask whether the Prime Minister would take a ride in a three-wheeled disabled person's car, and he refused to answer. I have come to the conclusion that the Prime Minister is getting upset about the Questions I am tabling to him. However, it is a well known fact that my questions are tabled not with a view to unsetting the Prime Minister but to get information.

Order. I am afraid that the hon. Member cannot continue to seek guidance in this way. I can give him the guidance at once that that is not a point of a order. These are not matters for the Chair. What I have said in answer to the hon. Member for Bolsover (Mr. Skinner) also applies to the point of order put by the hon. Member for Willesden, West (Mr. Pavitt). It is not a question for the Chair, but I am sure that the hon. Gentleman's remarks will have been noted.

Orders Of The Day

Supply

[3RD ALLOTTED DAY],— considered.

Pensions

Before I call the hon. Lady the Member for Hitchin (Mrs. Shirley Williams) to move the Motion, I must inform the House that I have selected the Amendment in the names of the Prime Minister and the other right hon. Gentlemen, to leave out from "House" to the end of the Question and to add instead thereof:

"welcomes Her Majesty's Government's continuing commitment to protect the living standards of old people, as evidenced by the recent increase in retirement pensions, the provision of pensions for the over-80s, and the improvement in public service and Armed Forces pensions; and notes with approval the increased resources made available by Her Majesty's Government for developing the services for the elderly "

3.37 p.m.

I beg to move,

That this House, disturbed by the plight of retirement pensioners this winter, and aware that the recent increase has largely been absorbed in rapidly rising prices, regrets that Her Majesty's Government has taken no further steps to improve the immediate purchasing power of pensioners, which would also assist the national economic position.
We believe that the Government now have a rare opportunity to put right a very inadequate increase in pensions and that this will make sense both economically and socially.

On 4th February, 1971, the Secretary of State said in the course of the debate:
"There is a silent nightmare going on among the elderly, the hard-pressed, many of the sick and disabled, and the very poor in this country."—[OFFICIAL REPORT, 4th February, 1971; Vol. 810, c. 1957.]
That nightmare has not ended. The Secretary of State saw the problem, but he failed to find anything but that bitter answer. The "biggest rise in pensions ever" is a very sour irony. Again and again the Government make this claim without reference to its real purchasing power; without reference to the inflation in prices, or to the fact that they have presided over the most rapid increase in cost of living in recent years. They must know as well as we do that their reference to "the biggest rise in pensions ever" is merely an attempt to take a great many people for a ride.

I said on 3rd May, 1971, that the increase proposed will not maintain the purchasing power of the pension for long. By October, 1971, the pension was worth exactly 12p more than in November, 1969. Prices are still rising at over 9 per cent. per year. This means that soon after Christmas, and at the latest by some time in February, the pensioners will be getting less in terms of real value than they were in November, 1969, and long before the next review is due pensioners will be getting less even than they received in 1963.

For 21 months of the next two years before the next uprating is due—I was extremely sorry to see the Government confirm their adherence to a biennial review in the recent White Paper on Public Expenditure—pensioners will become steadily poorer month by month than they were when the last up-rating occurred in November, 1969. But the position is considerably worse than this because, as many of my hon. Friends know, the cost of living index for pensioners moves more rapidly forward than the index does for the population as a whole, because the pensioner spends a very much greater share of his meagre income on food, fuel and rents than do the rest of the population.

In all three of these fields the Government have either taken or are shortly about to take action which will increase the prices of those necessities even more. Furthermore, women pensioners between 60 and 65, as my hon. Friends point out in Question after Question, are obliged to pay increased prescription charges which by themselves wipe out the whole of the increase in pension, the small sum of 12p which the Government are still holding on to.

There is another fact which has not often been raised in the House but which I believe to be important. In November, 1966, the then Labour Government introduced what was called the long-term addition, a sum of 45p a week, which was automatically paid to all old-age pensioners on supplementary benefit who had no other resources. The 45p auto- matic long-term addition, which goes to 98 per cent. of pensioners on supplementary benefit, was increased in July, 1968, to 50p. It has not been increased since.

One does not need to be a mathematician to see that the fall in the value of the long-term addition alone has been greater than the increase in pensions. What this means to the pensioner on supplementary benefit is that the 98 per cent. who get a long-term addition are worse off today than they were in 1969—and, by definition, they are the poorest 2 million pensioners.

Furthermore, one of the few growth points which the Government have successfully brought about is a growth in the number of people drawing supplementary benefit. It has increased in just over a year from 1·6 million to 1·96 million. In other words, side by side with a million unemployed, the Government have also reached the target of 2 million pensioners on supplementary benefit. On top of that there are estimated to be anything between 500,000 to 800,000 who do not claim the supplementary benefit to which they are entitled.

So much for the situation on pensions—

The hon. Lady is misusing the figures on such a wholesale scale that I cannot refrain from interrupting to point out at least one confusion. Does she not agree that some of the increase in the number of supplementary pensioners is due to the fact that the level of requirements has been increased and is thus giving help to a larger number of people than before—not because of increased poverty but because this Government, as have previous Governments, have raised the threshold of the definition of poverty?

I do not follow the Secretary of State because the increase was 20 per cent. in regard to supplementary benefit and on his own figures the increase in purchasing power has been something like 2 per cent. There has been an increase in those drawing supplementary benefit, and this includes those who are retired pensioners. This the figures cannot be shown to deny.

Would my hon. Friend accept that the real reason why the number on supplementary benefit has increased at the rate she suggests is that the real value of money has fallen?

Indeed, this is the point I am trying to make to the Secretary of State, but we seem to be having an argument about it. The point I want to make is that the Government have a very special opportunity at this time in the existing economic situation to take steps to do something for the old-age pensioners.

The Government in their White Paper on Public Expenditure declared
"There is no question here of other needs competing for resources; only of using productive power which would otherwise be idle."
As my right hon. Friend the Member for Birmingham, Stechford (Mr. Roy Jenkins) has pointed out, the Government so far have produced £1,400 million in tax relief, offset by some £400 million in extra charges.

In the debate on 23rd November the Chancellor claimed
"… never before have a Government taken so much action to expand demand and stimulate employment."
He went on to say:
"Finally, we have provided the biggest ever increase in pensions"—
there we see the Government using that same phrase—
"an action which is both reflationary and directly meeting needs."—[OFFICAL. REPORT, 23rd November, 1971; Vol. 826, c. 1159.]
The Chancellor cannot expect the country to swallow these extraordinary claims. He has concentrated a large part of his tax reliefs on those who neither need them nor are currently spending them. He has concentrated his extra charges on many who cannot afford them. The latest example of this philosophy is the claim that extra relief is to be given to parents sending their children to direct grant schools. This in some extraordinary way is to have priority rather than the hundreds of thousands of people who are in dire poverty.

The Chancellor of the Exchequer has argued that the pensions increase was reflationary, but we have already seen that a true reflationary effect involves an increase in purchasing power. By definition, after February there will be no increase in purchasing power on the part of pensioners; there will be the beginning of a long and steady decrease. A decrease in real purchasing power cannot be described as reflationary. It is deflationary over the period of time in which it takes place. Therefore, the pensioner will make not more but fewer demands on the economy, because of the action the Government have failed to take over the next 21 months.

What fundamentally the Chancellor of the Exchequer has done is to pump money into the economy, most of it in areas which are slow to respond and which do not assist the poorest in the land. He points to increases in hire purchase contracts and new car sales. This is a bit of a joke to the old-age pensioner, who does not have very much to do with these things. It is notable that the demand for basic requirements, for food and fuel and the like, has increased very much less than it has for semi-luxury necessities and luxury products of this kind.

In the Government White Paper, Command 4829, proposals are made for the next two years and, in terms of direct demand on resources, they amount to 3·9 per cent. a year on average in the next two years. The Chancellor's own forecast for an increase in the level of growth is somewhat higher than that. The recent figures of increase in industrial productivity are very considerably higher again. But unless the Government build up public expenditure to a point where it at least matches the rise in industrial productivity we shall get not just unemployment but even more unemployment than the Government's worst dreams at present encompass. Moreover, we shall get a reversal of the move towards greater productivity and industrial efficiency of a most dangerous and damaging kind.

It is clear that the Government must take further action, action which will show up immediately in the effect on purchasing power, if the economy is not to continue its long slide for many months to come. One of the ways in which I hope to be able to demonstrate later that the Government could do something most effectively and quickly to offset unemployment and the low present performance of the economy would be to find a way to increase the purchasing power of elderly people.

Surely the hon. Lady is aware of the double message which is coming from the Labour benches. She quoted her right hon. Friend the Member for Birmingham, Stechford (Mr. Roy Jenkins) and then went on to attack, in a rather class hatred sort of way, the reduction in direct taxation. But her right hon. Friend made clear that the one problem facing this country is the lack of investment in industry, and the reduction in direct taxation is likely to help on that front. This is in no way tied up with the hon. Lady's feelings of sympathy with the old-age pensioners, which I share.

I do not think there is a disagreement between the Government and the Opposition on reduction of taxes. There is a sharp disagreement about whose taxes should be reduced, and I will come to that point later.

I want to refer to what has been a unanimous chorus in the Press about the inadequacy of measures so far taken. I quote the Financial Times of 24th November, 1971:
"The unemployment position dictates that the risks should be run on the side of expansion."
The Guardian said on the same day:
"With an enormous balance of payments surplus, with rapidly rising productivity and freed from the discredited notion which saw positive merit in cutting back public expenditure, the Chancellor has missed yet another opportunity to act decisively."
Even the Sunday Telegraph, in the person of its financial columnist, Mr. Patrick Hutber, said last Sunday:
"How about £10 a head for the pensioner and £100 a head (a 'donation', as Sir Alec would say) for the unemployed?"
The rumours which have been referred to today in Questions about the use of the regulator make hon. Members on this side of the House suspicious that the Chancellor of the Exchequer has let the cat out of the bag somewhere when not under the scrutiny of his right hon. Friend the Prime Minister. We suspect that before long the Government, in desperation, will take yet other action to try to inflate this stubborn economy.

I shall now suggest ways in which we think that might be done in a much more socially just way than by the use of the regulator. I put before the Secretary of State a number of specific pro- posals. He will know that the T.U.C. and the Labour Party have called for immediate increases in pensions. The T.U.C. has called for a £1 increase right away and for a further £1 at the time of the Budget. That seems to be a very proper claim. But I am also well aware that the right hon. Gentleman will say that it is administratively impossible. I remind him that in 1964 he was one of the leading figures in the then Opposition to claim that eight weeks was quite sufficient to raise national assistance rates in 1955 and that two to three months should have been sufficient to do the same in 1964. He criticised my right hon. Friend the then Minister of Pensions for acting so slowly that a Government which came to power in October increased the amount going to pensioners only in December and January.

Let me put before the right hon. Gentleman certain proposals which seem to do exactly what needs to be done to put more money in the pockets of pensioners this winter. They are ways which I believe are administratively possible.

First, will the right hon. Gentleman consider an emergency winter payment in the shape of the one which took place in 1964? I repeat that it took two to three months to make it operative. That would assist pensioners this winter to meet the increasing bills which to them are a growing nightmare. The right hon. Gentleman could do it without having to change the pension scheme, and without the complicated business of going through the contributions of employers and employees. He could do it by an Exchequer contribution of the kind that was made in 1964, and he could do it by stamping pension books. There would be no great administrative difficulty than that.

Secondly, and, I suggest, in addition to the first proposal, will the right hon. Gentleman now consider the immediate doubling of the long-term addition to which I have referred? The present long-term addition which goes to supplementary benefit pensioners is 50p. If it were doubled to £1, the cost would be about £50 million a year. That is not a very large sum. But it would more than restore the value of the long-term addition from where it was last left in 1968. Administratively, it would be relatively simple, and it could be done relatively quickly. It would benefit the poorest pensioners.

Thirdly, will the right hon. Gentleman consider carefully the proposal put forward by my hon. Friend the Member for Oldham, West (Mr. Meacher) for an immediate extension of the scheme for heating allowances and an immediate increase in the allowance figure, which is now 75p a week? As everyone knows, the true cost of heating a house or even a flat is very much more than 75p a week. For a group in the community which suffers more from the cold than most of us and which very often cannot get out, it is crucial to try to increase the limits on heating. [Interruption.] The hon. Member for Worcestershire, South (Sir G. Nabarro), I suspect, is not the best expert on this problem.

I am a member of the Institute of Fuel who is deeply interested in the price of coal. Old-age pensioners in South Worcestershire are now, as a result of exorbitant wage demands by miners, paying 90p a cwt bag for "coal" which is made up of stones and rubbish.

Whatever cause the hon. Gentleman cares to offer, I am sure he agrees with me that 75p goes very little way towards paying the cost of heating a house or flat.

Next, I suggest to the right hon. Gentleman that at present the heating allowances go to only one pensioner in about 30. At present, the allowances go to about 186,000 people, which is a very small proportion of pensioners. Therefore, I suggest to him that the present very restrictive rules operated by the Supplementary Benefits Commission with respect to paying additional heating allowances should be looked at again to see whether a much wider group of pensioners and supplementary benefits pensioners should not be brought within the orbit of this assistance.

Is my hon. Friend aware that in the London Borough of Islington the local task force has carried out an exhaustive survey, a copy of which has been sent to the Minister, pointing out that in many cases pensioners have to choose between food and fuel because of the inadequacy of the heating allowance? Is she aware, further, that when I questioned the right hon. Gentleman's Ministerial colleague, he dismissed what I said and replied that the Supplementary Benefits Commission currently feels that the allowance is inadequate?

I am obliged to my hon. Friend. I am sure that the right hon. Gentleman will be as familiar with that survey as I am. It also shows that a disturbingly large number of pensioners complain about being constantly cold.

Fourthly, I make the proposal that the right hon. Gentleman should request his right hon. Friend the Chancellor of the Exchequer in the forthcoming Budget not only to see whether he can make provision for a further increase in pensions but, at least as important, to raise the threshold of tax for elderly people. As we know, present taxation bites into the incomes of elderly people at a very low level. Surely there is a very strong case for raising the tax threshold, if necessary, by a further increase in personal allowances for those over retirement age.

Whatever else the right hon. Gentleman may say about us, I hope that he will not say that we are not attempting to be reasonably constructive.

Fifthly, I suggest that the right hon. Gentleman must look again at the possibility of an annual review. On 10th March, 1971, The Guardian said:
"With current rates of inflation the adequacy of a biennial review must be in serious doubt."
On 17th June, 1971, the Opposition moved an Amendment to the National Insurance Bill calling for an annual review. We said:
"… it is the only straightforward and simple solution … to the devastating effect inflation is having on elderly retired people."—[OFFICIAL REPORT, 17th June, 1971 Vol. 819, c. 781.]
With his usual charm, the Under-Secretary had said when we moved the same Amendment in Committee:
"The hon. Lady would not expect me to give a firm commitment to an annual review today"—
indeed, we did not—
"but I hope that what I have said will reassure her that the matter is open to consideration."—[OFFICIAL REPORT, Standing Committee G. 20th May, 1971; c. 110.]
That was June. We are now at the end of November. The door to consideration has been open quite long enough. Can we now expect an answer—the only answer that we can get if that consideration has been serious to our demand for an annual review?

In 1969 the then Minister of State at the Ministry of Health and Social Security estimated the cost of an annual review on the basis of two 10-shilling increases rather than a single £1 increase at a biennial review as an additional £140 million. The figure may be slightly higher now. That represents 1p on tax. It reminds me of an old rhyme:
"Christmas is coming, the geese are getting fat,
Please to put a penny in the old man's hat.
If you haven't got a penny, a halfpenny will do,
If you haven't got a halfpenny, then God bless you."
Cannot the Government find one penny on income tax to enable an annual review to be brought in? Is this not a higher priority than another penny off for surtax payers?

I am sure that the Government will say that none of our five proposals is practicable because, although they may meet some administrative difficulties, the pressure on the Department at present is too great. I want to look at that frequently used excuse "the pressure on the Department." One of the growth industries in this country is the Department of Health and Social Security. Members of Parliament know that the offices of that Department, like the offices of the Department of Employment, are becoming more and more overwhelmed with work. There are increasingly long delays in reply, there is increasingly more difficulty about getting home visits, and there is a massive amount of compulsory overtime.

In a situation where a Department, like the right hon. Gentleman's, is groaning, as all who visit social security offices know, because a great deal of additional work is having to be done, why do not the Government abandon their absurd dogma about the size of the Civil Service and give qualified young school leavers who are looking for jobs in the North, in Scotland, in Wales and elsewhere, opportunities of becoming clerical officers in the Department and getting the training that go with those jobs? There is an absurd nonsense about running compulsory overtime side by side with the desperate problem of school-leaving employment. The Government must look at this situation again. We have had an increase of nearly double in the number of school leavers without employment and a decrease of nearly two-thirds in the number of vacancies for them. Yet this is the time when the Government prefer to run their offices inefficiently, hire temporary help, and do nothing to give opportunities to youngsters who badly need them.

Finally, I turn to the point made by the right hon. Gentleman in answer to a Question. When mentioning deputations from pensioners he used the phrase.
"pensioners … need an assurance about the future."
Alas, the future is, if anything, just as grim as the present under this Government. We now have their proposals for pensions in the long term. We have their proposals for a reserve scheme which is so heavily weighted against the people who will be driven to rely upon it—lowpaid workers, women workers, and people changing their jobs—that no one who is not forced into that scheme would possibly adopt or accept it. It has no Exchequer contribution, no tax relief, no guarantee against inflation, and no credit for periods of unemployment or sickness. It is not only a recipe for administrative chaos, but the worst bargain since the Government sold the public its promises in June, 1970.

The basic benefits in the Government's new scheme will be below the supplementary benefit level for years to come, and the reserve scheme addition will be pathetically small and in many cases those who receive it will be left below the supplementary benefit level. This is all to make the Government's backing for occupational pension schemes work—occupational pension schemes for which the Government are accepting an employer's contribution of 2½ per cent. at a time when employers often contribute between 8 and 10 per cent. to staff pension schemes. The Government have done inadequately by present pensioners and they are planning to do inadequately by future pensioners as well.

The Government seem to be in a dreadful mess of their own making. They face high unemployment and seem to have little idea of what else to do about it than blame their advisers. They face rapid inflation at the same time.

The Secretary of State, who is a humane man, knows that we are not simply producing political propaganda about pensioners. Hon. Members on both sides know that the plight of pensioners is serious. The Chancellor is looking for opportunities to increase public expenditure, the country is looking for opportunities to end the desperate level of unemployment, and the pensioners are looking for an opportunity to live on their parlous income. Why not bring these three things together in an act of imagination and increase the income of the old now in one or other, or preferably all, of the ways which we have suggested?

4.6 p.m.

I beg to move, to leave out from "House" to the end of the Question, and to add instead thereof:

"welcomes Her Majesty's Government's continuing commitment to protect the living standards of old people, as evidenced by the recent increase in retirement pensions, the provision of pensions for the over-80s, and the improvement in public service and Armed Forces' pensions; and notes with approval the increased resources made available by Her Majesty's Government for developing the services for the elderly."
I have great personal respect for the hon. Member for Hitchin (Mrs. Shirley Williams), but a number of things which she said today were far below her normal level of clarity and understanding. I shall pick up some of the errors which she made as I go through my argument, but I shall reserve the party political comments which her speech deserves for the end of what I have to say because at the heart of the debate is an intensely serious national issue with which I wish to deal square on.

There are nearly 9 million people over minimum retirement age. Of those, about 71 million are drawing the retirement pension. The House will remember the relatively neat divisison of this large number of people into one-third who are well enough off, despite the specially high tax threshold for the elderly, to be paying direct taxation, one-third who are actually receiving supplementary pensions, and one-third in between who are not well enough off to be paying direct taxation and not with low enough incomes to be on supplementary pensions. But what the House does not always remember is that the standard of living of the poorest pensioners has significantly improved over the last 15 years.

The House ought to absorb some rather remarkable figures. In the decade from 1955, when there was a Conservative Administration, to 1965, after the first Labour up-rating, there were five separate up-ratings of what we would now regard as a reasonably generous standard. Successive up-ratings produced improvements in the buying power of the pension in real terms between 1955 and 1965 of 15, 11, 10, 9 and 12 per cent. The result was that in those 10 years, in consequence of four Conservative up-ratings and one Labour up-rating, the buying power of the pension improved by no less than 81 per cent. I do not think that that is a figure which hon. Members on either side distinctly recognise. That was at a time when the number of the working population, compared with the number of elderly, was already dwindling and Governments had not realised as much as we realise now that pensioners need improved benefits and services. Consequently, during those 10 years, though the cash benefits improved, relatively less extra money was provided to improve services for the elderly than is being provided now.

Let us compare those 10 years of four Conservative and one Labour up-ratings with the aggregate result for pensioners of the last six years in which there were two Labour up-ratings and now the current Conservative up-rating. I am admittedly comparing a six-year period with a 10-year period but, compared with the 81 per cent. improvement in buying power in the 10 years to which I have referred, in the last six years—and I include the Government's recent up-rating—there has been an improvement in buying power of only 6 per cent. That is a sobering comparison.

Both parties must recognise that the proportion of the working population to the elderly has been dwindling sharply. Indeed, the figures are quite striking. Whereas in 1955 there were well over five members of the working population to every pensioner, there are now fewer than four members of the working population to every pensioner. Thus, we now have a more difficult task inasmuch as fewer workers are supporting a larger proportion of pensioners.

I must remind the House that both parties, and particularly this Government, are intensely aware of the need to improve services as well as cash benefits for the elderly. That is why, in addition to the improved pension that was paid from this September, the House ought to take into account the two extra injections of money which the Chancellor of the Exchequer provided last November and this November to improve the services for the elderly.

It is normal for the pension to lose buying power between up-ratings. That has been proved under both parties when in Government. It is, of course, much more depressing for the pensioner when the cost of living rises sharply between up-ratings than when it does not, and what is above all important to the pensioner is that the degree of improvement in real terms which the pension is given at an up-rating provides some protection against any fall in the value of money before the pension is up-rated again.

It is a sobering fact that despite a good up-rating when Labour first came to office in 1965 their next two up-ratings were not particularly handsome. In 1967 they did just what we had have done this time—roughly a 3 per cent. improvement in real terms. In 1969 they provided nothing extra in real terms. In fact, they marginally failed to restore the 1967 buying power.

There is, in effect, a saw-tooth effect on pensions in between up-ratings as the rise in the cost of living—or, as the hon. Member for Bolsover (Mr. Skinner) puts it, the fall in the value of money—reduces the value of the pension that has been awarded. There are only two ways to deal with that. One is to prevent any inflation, and no Government have succeeded in doing that. The second is to restore the buying power every month, or every quarter. What the Government seek to do is to provide a sufficient margin and to restrain inflation enough to protect the pensioner as much as is practicable.

:I thank the right hon. Gentleman for his courtesy in giving way. I regard the right hon. Gentleman as a man with a social conscience. Will he tell the House what is wrong with making the increase in pensions automatic with the rise in the cost of living; that is, gearing pensions to the cost of living so that they automatically rise with the increase in the cost of living? Is there anything wrong with that? If not, why cannot it be done?

Except for the Labour Government's 1969 up-rating, it has been achieved by post-war Governments, but achieved at roughly two-year intervals. If it had been automatic, pensioners would not have gained the improvement in real terms which I have been describing—or not necessarily, if it had been limited to that.

The up-rating in September of this year restored the buying power of the 1969 pension in full and provided a little extra—a 3 per cent. improvement in buying power in real terms. In addition, the up-rating provided the largest and most varied set of improvements for those receiving benefits that has been introduced to this House since the 1948 National Insurance Act. The position is that 150,000 people who were not receiving a pension are now receiving old persons' pensions as a result of our Act in May, 1970, and that as a result of the recent up-rating supplementary benefits have been increased. An additional extra benefit has been provided for all those over 80. That has helped about one and a quarter million people, and has made the pension for the over 80's worth 8 per cent. more in real terms than they received in 1969.

The hon. Lady asked me to speak to my right hon. Friend the Chancellor of the Exchequer about raising the tax threshold for the elderly. As she knows, that was done by my right hon. Friend in his Budget. This Christmas—and I want to put this soberly and factually—despite the fact that prices are still rising, pensioners as a whole will still be marginally able to buy more than ever before. I am putting it soberly and modestly. Those over 80 will have marginally more still in buying power.

I have a lot to say, and perhaps the hon. Gentleman will allow me to continue.

The last up-rating represented the first occasion on which any Government increased benefits substantially without raising contributions for low-wage earners. That was something to which hon. Gentlemen opposite paid great lip-service, but which they never managed to do. It ought to be remembered, to the credit of this Government, that that is what we managed to do this September, and that it has been benefiting low-wage earners every week since September. The second point is that we are not only improving the cash benefits to pensioners but are pumping in extra money to improve the local authority and health services for their benefit.

The hon. Lady made a speech which was compounded half of suggestions for demand management, which fall to my hon. Friend the Chancellor of the Exchequer to consider, and half of suggestions for improving the conditions of pensioners. Her proposals overlap to some extent, and she and the House will understand if I say that nearly all the points she made are for my right hon. Friend.

I ought to remind the House that my right hon. Friend's Budget in April was criticised by some newspapers for being too inflationary, just as some newspapers now are begging him to reflate more, so I do not think that the hon. Lady was quite justified in her selective quotation from this batch of criticisms by some newspapers. My right hon. Friend has stressed that in the middle term there is adequate demand in sight, or coming into the economy, and that the national problem is to increase spending for the short term; that is, over the next year and the year after. Some of the hon. Lady's suggestions would increase spending—some less, some more—continuously in the future, and would not, therefore, necessarily fall into what my right hon. Friend sees as the necessary tactic for the next two years.

The House will be aware, and I shall therefore not rehearse the ingredients, that my right hon. Friend has announced a series of special injections of demand to take effect, as he and the Government hope, over the next year or two. They amount, on top of the general improve- ments in taxation and allowances in his Budget, to no less than £500 million to be spent over the next two years, particularly in the regions.

The hon. Lady was quite right in seeking for ways to suggest which would both cut unemployment—without, I hope she will agree, overloading the economy in the middle term—and also help the pensioners. But we have to recognise that, although a transfer by way of increased contributions or taxes from the working population to the retired population injects some extra buying power by the difference in the propensity to save, it cannot be measured in gross terms as a new addition to buying power.

Some of the hon. Lady's suggestions, and the suggestion of the T.U.C., I believe, which combines increased contributions, in a perfectly honourable proposal, with increased pensions, would not in themselves increase buying power by more than the difference between the propensity to save of different groups. I am not attacking them on these grounds—

May I give one word of explanation? The proposals which I put forward, first for a winter emergency payment and second for a long-term addition, were to be financed from the Exchequer, and would therefore be deficit financing and not deflationary.

The hon. Lady said that there should be a winter emergency payment. She said that in 1964 Miss Herbison, the Minister concerned, made a £4 payment to some of the elderly. But the hon. Lady, I am sure by mistake—at least, I imagine it was by mistake, because she generally does her homework thoroughly—might have given the House the impression that all the retired people received £4 extra. In fact, of course, it was the national assistance beneficiaries only—a very important group, but only about a third of the total.

It is true that Miss Herbison made that payment and that when the new Labour Government came into office there had been 18 months since the previous up-rating compared with two months now. So that background is very different. The hon. Lady did not make it clear whether she was proposing help just to those on supplementary benefit or to the totality of pensioners.

The hon. Lady went on to speak about the heating allowance. Here, once again, she fell below her usual high standard. There is no suggestion that 25, 50, or 75p is intended to provide for the heating of a supplementary pensioner. The basic supplementary pension itself is intended to contain money which is used for fuel, and the extra allowance is to top this up in cases where the housing or the health or a combination of both of the individual pensioner justifies it.

The hon. Member for Islington, East (Mr. John D. Grant) intervened to remind the hon. Lady of the recent Task Force inquiry in Islington. I have, of course, read the report with concern. It reveals a number of people—I think 47 among the many visited—who were not receiving what Task Force thought was an entitlement to the extra heating allowance. I am very concerned by this report and am asking Task Force whether it would find it possible to release the names and addresses to me so that I can have special visits made. Certainly it would be a very serious matter if large numbers of people in bad health and bad housing were not, after application, receiving the extra benefit which the Government have made available—

I refused to give way just now to the hon. Member for Manchester, Ardwick (Mr. Kaufman). If he would not think me discourteous, I will give way to his hon. Friend.

I have no wish to be discourteous myself. Would the right hon. Gentleman not agree that this problem in Islington can be multiplied throughout the country and that, therefore, it is not enough to consider it in isolation? Would he not agree that there needs to be a general supplementary benefit to all the supplementary pensioners in order to meet the amount necessary for heating? Surely the argument of my hon. Friend underlines this very point.

There are three points which I want to make. First, even if it be true all over the country, an identified case is very valuable so that Ministers can draw conclusions from it, and this is the only example which I have been given in fair numbers of a heating allowance allegedly not reaching the right people.

Second, the House must realise that a universal heating allowance for supplementary pensioners would be a completely open-ended commitment. Paying the rent of supplementary pensioners is paying a charge which can be identified, but paying for heating could be completely open-ended.

Third, if we were to provide an extra indiscriminate heating allowance for supplementary pensioners, we would be treating them far better than the poorer of the pensioners themselves, and that could be very complicated for both sides of the House.

I have been generous to hon. Members opposite; would my hon. Friend like to intervene now?

I am obliged to my right hon. Friend. I entirely agree with what he said about any indiscriminate allowance for fuel costs. Would he take into account this winter the really large increase in the price of solid fuel, which I instanced to the hon. Member for Hitchin (Mrs. Shirley Williams) as 90p or 18 shillings per hundredweight bag? This is such a big increase that there must be some reflection of the increased costs in the allowance given to elderly people.

It is true that coal has gone up in price and that wage claims have been a very large part of it.

And £40-million worth of imported coal. Tell the right hon. Gentleman that.

But the price of coal is an ingredient in the retail price index which we have taken into account in measuring our job in restoring the purchasing power of the pensioner, and we have done marginally better than that.

It is constructive when the hon. Member for Hitchin and the T.U.C. propose that higher benefits should be financed by higher contributions. But—this is relevant to the whole question of how frequent up-ratings should be—the House should recognise that increased contributions at a certain stage and at a certain level of frequency could work through into prices and themselves intensify the worries which pensioners have. We cannot measure the exact level of frequency or degree of increase which would bring this about, but we must bear this possibility in mind.

On the hon. Lady's suggestion of an annual review, I will not hide behind any argument about this being administratively impossible. It would be an administrative burden. The social security offices, as the hon. Lady recognised, have been very heavily burdened and have carried out nobly a very large number of extra tasks for the benefit of sections of the population on top of coping with the postal strike and the normal up-rating work—