Written question asked by Jacques Arnold (Conservative), in the House of Commons. It was due for an answer on Thursday, 20 March 1997. It was answered by Oliver Heald (Conservative) on Thursday, 20 March 1997 on behalf of the Department of Social Security.

Dept of Social Security

Question: What estimate he has made of the impact on the public finances of Basic Pension Plus. - Includes figures.

Answer: Mr. Arnold: To ask the Secretary of State for Social Security what estimate he has made of the impact on the public finances of basic pension plus; and if he will make a statement. [21475] Mr. Heald: Under basic pension plus, the value of the new rebates, less the impact of the proposed tax changes, will grow by a net average amount of about £160 million a year, reaching a peak of about £7 billion or 1/2 per cent. of GDP around 2040--substantially less than the net costs of rebates from SERPS, which peaked at almost 1 1/2 per cent. of GDP. The starting cost of the new scheme will depend on the precise age limit chosen. Expenditure on state pensions will fall rapidly after 2040 and savings in public expenditure will build up reaching some £40 billion a year.

Secondary information

Type: Written question
Reference: 21475; 292 c906W
Session: 1996-97
Subjects: Expenditure Pensions Personal pensions State retirement pensions State earnings related pension scheme