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War Pensions

Volume 461: debated on Monday 4 June 2007

To ask the Secretary of State for Defence whether he plans to estimate the cost of re-linking war pensions with earnings. (139085)

I refer the hon. Member to the answer I gave on 8 January 2007, Official Report, column 113W. Historically, the MOD has applied the same uprating principle for war pensions as used by the Department for Work and Pensions to increase state pensions. Since 1979 this has been to use the retail price index (RPI). On current plans we intend to follow the position set out in the White Paper ‘Security in retirement: towards a new pensions system’, which states that the earnings link will be restored to the basic state pension. The objective is that this will be done, subject to affordability and the fiscal position, in 2012 but in any event at the latest by the end of the next parliament.