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Dept of Social Security

Answer

Mr. Field: To ask the Secretary of State for Social Security if he will estimate the additional cost in each of the next five years, net of means tested benefits and taxation, of an increase in the single person's basic state retirement pension in April 2001 by (a) £5 for 75 to 79-year-olds and (b) £10 for 80-year-olds and above. [140950] Mr. Field: To ask the Secretary of State for Social Security if he will estimate the cost for each of the next five years, net of taxation and reduced expenditure on means tested benefits, of an increase in the basic state pension of (a) £5 for 70 to 79-year-olds and (b) £10 for those aged 80 years and over. [141140] Mr. Rooker: The information is in the table. The cost of a flat rate addition to the basic state pension of £5 for those aged 75-79 and £10 for those aged 80 and above _________________________________________________________________________________________________. Gross cost (£ billion) Net cost (IRB and tax savings) Net cost (IRB only) 2001-02 1.9 1.1 1.2 2002-03 2 1.2 1.3 2003-04 2.1 -- 1.3 2004-05 2.1 -- 1.4 2005-06 2.2 -- 1.4 _________________________________________________________________________________________________. Notes: 1. Figures are rounded to the nearest £0.1 billion. 2. Gross costs of pension increase estimated by the Government Actuary's Department. 3. Income tax revenue estimated by the Inland Revenue, and income-related benefits savings are estimated using the Policy Simulation Model. 4. Estimates of income tax revenue are not available beyond 2002-03. 5. Costs are given in cash terms. 6. Legislation and computer systems would not allow for the implementation of this. 7. Figures are illustrative.

Secondary information

Type

Written question

Reference

357 c854W; 140950;141140

Session

1999-00

Subjects

Pensioners Pensions State retirement pensions Uprating

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk