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Dept for Work and Pensions

Answer

Mr. Webb: To ask the Secretary of State for Work and Pensions pursuant to the answer of 6 November 2003, Official Report, column 806W, on pensions, if he will estimate (a) the gross cost and (b) the cost net of savings on means tested benefits and increased income tax revenues of a combined policy of age additions to the basic state pension of (i) £10 per week at 75 and (ii) a further £5 a week at 80 from April 2004. [138464] Malcolm Wicks: The estimated gross cost and the cost net of savings on means tested benefits and increased income tax revenues of a combined policy of age additions to the basic state pension of £10 per week at 75 and a further £5 a week at 80 from April 2004 are set out in the following table: _________________________________________________________________________________________________. £ billion Gross cost 3.0 Net cost 1.8 _________________________________________________________________________________________________. Notes: 1. Options (i) and (ii) have been costed jointly. 2. Figures are in 2003-04 price terms and are rounded to the nearest £100 million. 3. Gross costs are estimated by the Government Actuary's Department. 4. Income-related benefit offsets are calculated using the DWP policy simulation model. 5. Income tax revenue increases calculated by the Inland Revenue using the 2000-01 Survey of Personal Incomes and April 2003 Budget forecasts. 6. The age addition increases are assumed to be flat-rate increases and are paid in full to all pensioners of applicable age.

Secondary information

Type

Written question

Reference

138464; 413 c791W;413 (Not in Bound Volume)

Session

2002-03

Subjects

Age Finance Pensions Means-tested benefits State retirement pensions Taxation Tax yields Age addition

Contains statistics

Yes