War Pensions: Uprating

Lord McFall of Alcluith Excerpts

Monday 11th January 2016 Lords Chamber

[Earl Howe]

My Lords, I know that the Royal British Legion has come up with its own calculation. To answer the noble Baroness’s question, I am not aware that the Treasury has done so. However, the principles should be clear here. Under the Armed Forces compensation scheme and the war pensions scheme which preceded it, an injured service man or woman is assessed on their level of disability, and based on that assessment they are compensated for their deemed loss of earnings in civilian employment. After that, the guiding principle is that the real-terms purchasing power of the annual payment should be maintained, and it is therefore indexed to the consumer prices index, which, as I said, is the index applied by the DWP to all disability benefits.

[Lord McFall of Alcluith (Lab)]

My Lords, the Royal British Legion is very clear in saying that war pensions are losing value compared with military and civilian salaries. It is inexplicable that our injured and disabled comrades cannot have the same as others in society—the triple lock. Is it not a sad commentary that the Royal British Legion and others are correct in saying that, in this case, we are not all in this together?

[Earl Howe]

My Lords, the triple lock applies only to the basic state pension. Members of the Armed Forces will therefore benefit from the triple lock once they reach state pension age, but there are broader issues to be considered here. One is that maintaining parity with social security disability benefits is in principle the right thing to do, but secondly, there is the affordability issue. As a Government and, I believe, as a nation, we have to stick with the long-term economic plan and we have to continue to live within our means.