Written question asked by Steve Webb (Liberal Democrat) on Tuesday, 26 October 1999, in the House of Commons. It was due for an answer on Monday, 1 November 1999. It was answered by Lord Darling of Roulanish (Labour) on Monday, 1 November 1999 on behalf of the Department of Social Security.

Dept of Social Security

Question: To ask the Secretary of State for Social Security, what estimate of the all-items RPI to September 1999 underlay his projections of social security expenditure for 2000-01; and by how much expenditure would be reduced if benefits were uprated by the actual inflation rate to September 1999. - Inc figures and ref to Cm 4214. (Holding answer 29 October 1999).

Answer: Mr. Webb: To ask the Secretary of State for Social Security what estimate of the all-items RPI to September 1999 underlay his projections of social security expenditure for 2000-01; and by how much expenditure would be reduced if benefits were uprated by the actual inflation rate to September 1999. [96299] Mr. Darling: [holding answer 29 October 1999]: The inflation assumptions underlying the Department's expenditure forecasts were set out on Page 89 of the Social Security Departmental Report (Cm 4214). The Report also makes clear that the forecast depended on a number of other assumptions. These include economic assumptions such as the rate of unemployment and the growth in earnings which underpins forecast spending on the Minimum Income Guarantee. It also takes account of Government policies already announced, such as above inflation rises in Child Benefit. The effect of a 1 per cent. variation for all benefits is around 830 million. This assumes that both the RPI and the Rossi index vary by the same amount.

Secondary information