CAB23-58 — Page 93

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AR PENSIONS.

Previous Reference: Cabinet 41 (25), Con- clusion 12.)

4. The Cabinet had before them & Memorandum by

the Minister of Pensions (Paper C.F.-208 (28))

in which he proposed a permanent stabilisation

of present rates of pension and other allowances

and grants so far as they are expressed to be

dependent on the cost of living, accompanied by

certain conditions to safeguard our future liabil-

ity.

While the Cabinet inclined favourably

towards the proposals of the Minister of Pensions

and congratulated Major Tryon on his courageous

and tactful administration of pensions, the

Ministers at the head of the Service Departments

asked for further time to examine the effect of

the proposals on post-War Service Pensions, etc.

The Chancellor of the Exchequer asked the

Service Ministers to bear in mind the different

footing of Great War pensions from post-War

pensions, but entered a caveat that the general

agreement which he had expressed at the outset

of the Meeting in favour of the proposals in

0.P.-208 (28) had been on the understanding that

they would not react so as to produce additional

expenditure in the Service Departments, and his

assent was subject to review if such increase was

likely to take place.

The Minister of Pensions asked the Cabinet

to remember that, whereas the Great War pensions

had remained constant for some years, the Service

pension arrangements had been changed. There was

consequently no fixed relation between them.

The Cabinet agreed

(a) That the Treasury should summon

a Conference with representatives

6-

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