War Pensions: Uprating

Lord Touhig Excerpts

Monday 11th January 2016 Lords Chamber

Asked by

[Lord Touhig]

To ask Her Majesty’s Government, further to the Written Statement by Earl Howe on 9 December (HLWS366) on the 2016 Uprating of the War Pensions Scheme, when war pensioners can next expect an increase in their pensions.

[The Minister of State, Ministry of Defence (Earl Howe) (Con)]

My Lords, the reason war pensions are uprated is to ensure that they reflect any increases in the cost of living. They are uprated annually in line with the consumer prices index—CPI—figure, which is the same measure the Department for Work and Pensions uses for uprating social security disability benefits and is in keeping with other public service schemes. Our approach ensures consistency with the measure of inflation used by the Bank of England. War pensions will increase when the annual CPI figure next increases.

[Lord Touhig (Lab)]

The Government deserve credit for enshrining the Armed Forces covenant in law, and I am sure that the entire House endorses the words of the Defence Secretary, who said in the latest covenant report that,

“we have a duty to ensure that our servicemen and women are treated fairly”.

Yet within days of his making that statement, his department published a Written Statement entitled War Pensions Scheme—Uprating 2016, although there is no uprating, and in fact war pensions have been frozen for two years. Does the Minister agree that war pensioners should be treated the same as, say, someone like me, who is in receipt of a state pension, which, as a result of the triple lock, is guaranteed to increase every year? As the Defence Secretary said, we have a duty to ensure that our service men and women are treated fairly, and surely none more so than those who have been injured while serving our country.

[Earl Howe]

My Lords, it is important to make it clear that despite its name, a war disablement pension is not a state pension but a form of compensation for disablement and/or injuries caused by service to the country. It is tax free and payable in addition to the state retirement pension. Payments are set at a higher rate than similar disability benefits and most war pensioners who have reached retirement age will be in receipt of both pensions.