Written question asked by Steve Webb (Liberal Democrat) on Wednesday, 2 December 1998, in the House of Commons. It was due for an answer on Wednesday, 16 December 1998. It was answered by John Denham (Labour) on Wednesday, 16 December 1998 on behalf of the Department of Social Security.

Dept of Social Security

Question: To ask the Secretary of State for Social Security, what would be the effect of the introduction of an age addition to the basic state pension of £5 per week for those aged between 75 and 79 years and £10 per week for those aged over 80, on (a) gross benefits expenditure, (b) net benefits expenditure and (c) income tax revenues. - Table given. (Holding answer 8 December 1998).

Answer: Mr. Webb: To ask the Secretary of State for Social Security what would be the effect of the introduction of an age addition to the basic state pension of £5 per week for those aged between 75 and 79 years and £10 per week for those aged over 80, on (a) gross benefits expenditure, (b) net benefits expenditure and (c) income tax revenues. [62871] Mr. Denham: [holding answer 8 December 1998]: The information requested is in the table. Full year expenditure and revenue effects of age additions in 1999/2000 £ million _________________________________________________________________________________________________. £10 age addition for 80 and over and £5 age addition for 75-79 Expenditure on Retirement Pension 1,760 Means-tested benefit offsets -580 Net benefit cost 1,180 Income tax offsets -120 _________________________________________________________________________________________________. Notes: 1. Estimates for Retirement Pension have been provided by the Government Actuary's Department. 2. Estimates for income tax revenues have been provided by Inland Revenue 3. Means-tested benefit offsets have been estimated using the 1995-96 Family Resources Survey uprated to 1999-2000 prices and benefits levels. 4. Estimates are in 1999-2000 prices and benefit rates, and are rounded to the nearest £10 million. 5. + costs, - savings.

Secondary information

Type: Written question
Reference: 62871; 322 c611W
Session: 1998-99
Subjects: Finance Income tax Pensions Means-tested benefits State retirement pensions Tax yields Age addition Higher pensioner premium