Oral Answers to Questions

Lord Hanson of Flint Excerpts

Monday 31st January 2011 Commons Chamber

[Nick Harvey]

The current training takes place at a variety of locations across the three services, some of which, including HMS Sultan, are in good order and could provide training well into the future. However, I have to say that other locations are in rather less reputable states of order and will have to be replaced. The change programme is currently considering whether there are such overwhelming advantages to having everything on one site that they would overcome the case against leaving some of the better facilities, such as the one my hon. Friend mentioned. As soon as we have a conclusion, we will report to the House.

[Mr David Hanson (Delyn) (Lab)]

2. What estimate he has made of the number of armed forces personnel and their dependants who will be affected by proposed changes to the uprating of armed forces pensions; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Defence (Mr Andrew Robathan)]

The change in the future uprating of public service pensions to the consumer prices index applies to all new pensions coming into payment, those pensions currently in payment and to the future uprating of deferred pension rights. CPI is deemed more appropriate than the retail prices index because the Bank of England uses it to measure inflation and it is an internationally standard measure. We understand the concerns that have been raised about this matter, but such is the scale of the economic problems that we inherited that no part of society—not even the armed forces—can be fully exempt from the need to find ways to reduce the budget deficit.

[Mr Hanson]

I thank the Minister for that answer. He will be aware that the change to CPI will mean a lower pension for those currently on one, which will be particularly difficult for service personnel who are retiring early because of grievous injuries caused in conflicts we are currently undertaking. Will he confirm to the House whether the change is intended to be temporary for the purposes of deficit reduction, or whether he intends to short-change our personnel on a permanent basis?

[Mr Robathan]

We most certainly do care about those whose pensions may be affected. In April 2010, RPI was less than CPI—it was actually negative—so RPI is not always better than CPI for pension uprating. The move is intended to be permanent because it will go forward for all public sector pensions and will be how public sector pensions will be determined in the future. If the Opposition wish to change that, perhaps they should announce now that they will change all public pensions back to RPI, should they ever—God forbid—be re-elected to office.