Part of the debate – in the House of Commons at 6:54 pm on 31 January 2007.
Adam Ingram
Minister of State (Armed Forces), Ministry of Defence
6:54,
31 January 2007
I recognise that a number of individuals who have no occupational pension rights for their time in the armed forces are aggrieved that improvements to pension provisions since the mid-1970s were not applied retrospectively, but that does not mean that the work and commitment of those who served in the armed forces before 1975 is not valued. We value their contribution in many other ways, but I have set out the context in which judgments have to be made. I urge my hon. Friend to accept that his campaign would not apply to the armed forces alone, and it would have to apply to all public sector schemes. The costs for the armed forces would be prohibitive, and the wider costs, too, would be of considerable magnitude and would be simply unaffordable.
Successive Governments have taken the same view. There is no realistic prospect that this or any other Government could afford the many billions of pounds that would need to be found to address the issue. That is an easy statement to make, but the real test is the legal one. The issue has been legally tested, and a claim for pre-1975 pension entitlement for the armed forces failed in the High Court in 2003, in the House of Lords in 2004, and in the European Court of Human Rights in 2006. There are other legacy issues, in addition to the pre-1975 pension entitlement that arose from Government economic policies and other improvements to AFPS 75, which did not cover those who served before the changes were made. Issues such as pension troughs, widows' and widowers' pensions for life, widows' post-retirement entitlement, and widows' third-rate and half-rate pensions are not unique to the armed forces, as there is a read-across to other public sector schemes. As I have said, making retrospective changes to pension schemes would have financial implications across the wider public sector.
My hon. Friend said that we are proposing to spend money on nuclear defence, and I accept that that is the case. He urged us not to spend that money and to give it to the pensioners instead. Everyone wants a say in how that money is spent but, interestingly, when the public considered the matter, it wanted to retain the country's nuclear defences. They will have another opportunity to consider the issue as the debate develops in the coming weeks before we make a decision. It is easy for my hon. Friend to make that equation, but he would have to queue up with everyone else who is campaigning for us not to go down that road and who has their own ideas about how that money should be disbursed. He should take into account, too, the public mood on that specific aspect of our national defence. I suspect, however, that we will find ourselves on different sides of the debate.
Since the 1970s there have been a number of improvements to pension provisions. For example, since the mid-1980s, individuals have had to serve for only two years to be entitled to preserved pension benefits and, from 1978, widows' pension provisions were extended to widowers. AFPS 75 incorporated those improvements to the spirit and letter of the legislation that required their introduction. The Government recognise the importance of proper pension provision for the armed forces. Since 2000, attributable death benefits for widows and widowers have continued on remarriage. Since March 2003, pension benefits have been made available to eligible unmarried partners for service deaths related to conflict. In September 2003, the concession was extended to cover deaths attributable to service. Since April 2005, death-in-service lump sums have risen to three or four times pensionable salary, depending on whether the member belonged to AFPS 75 or the newly introduced armed forces pension scheme 2005.
The introduction of the new pension and compensation schemes in April 2005 was a considerable achievement, given that it came at a time when outside schemes were under pressure to move away from defined benefit arrangements. The scheme benefits compare favourably with other public service schemes and with schemes in the private sector. They reflect modern best practice and provide for a significant increase in family benefits. I am confident that our new schemes are designed to meet the needs of the armed forces in the 21st century.
My hon. Friend said that he had a small interest to declare, but I know that it is not the prospect of financial gain that prompted him to raise the subject, and I fully recognise the kind offer that he made. We have to set the arguments that he advances against the major developments that the Government brought about to improve the pensions of those who serve in Her Majesty's armed forces. I appreciate the concerns that have been raised, but I set out to explain the reason for the current position and to put it in context. I fully recognise that my hon. Friend's early-day motion has attracted support. I just hope that those who signed it will read this debate, understand the logic of my argument, and reflect on their support for that motion.
My hon. Friend asked for a meeting between representatives from his campaign and the Secretary of State. As ever, that would be a matter for the Secretary of State, but I will certainly draw my right hon. Friend's attention to the request. I said at the beginning of my remarks that I would not refer back to the time of Queen Elizabeth I, and although I notice that we have a considerable amount of time left, I do not intend to fill it by talking about what happened in that period of history. We must consider the considerable progress made in the way in which we look after people. As my hon. Friend generally recognised, there was a change for the better in 1975. That decision goes back to 1973, although it was implemented in 1975, and it was delivered by the Governments of the time.
The changes that my hon. Friend asks for would have an immense impact on public expenditure, and that is the why successive Governments did not revisit the decision; it was not from a lack of recognition of those who serve in Her Majesty's armed forces, or elsewhere in public services. I think that that is a solid argument, and I ask my hon. Friend to reflect on his campaign.
Question put and agreed to.
Adjourned accordingly at seven minutes past Seven o'clock.
Also referred to as the ECHR, the European Court of Human Rights was instituted as a place to hear Human Rights complaints from Council of Europe Member States; it consists of a number of judges equal to the number of Council of Europe seats (which currently stands at 45 at the time of writing), divided into four geographic- and gender-balanced "Sections" eac of which selects a Chamber (consisting of a President and six rotating justices), and a 17-member Grand Chamber consisting of a President, Vice-Presidents, and all Section Presidents, as well as a rotating selection of other justices from one of two balanced groups.
The house of Lords is the upper chamber of the Houses of Parliament. It is filled with Lords (I.E. Lords, Dukes, Baron/esses, Earls, Marquis/esses, Viscounts, Count/esses, etc.) The Lords consider proposals from the EU or from the commons. They can then reject a bill, accept it, or make amendments. If a bill is rejected, the commons can send it back to the lords for re-discussion. The Lords cannot stop a bill for longer than one parliamentary session. If a bill is accepted, it is forwarded to the Queen, who will then sign it and make it law. If a bill is amended, the amended bill is sent back to the House of Commons for discussion.
The Lords are not elected; they are appointed. Lords can take a "whip", that is to say, they can choose a party to represent. Currently, most Peers are Conservative.
Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.