HC Deb 09 June 1980 vol 986 cc23-4W
Mr. Neubert

asked the Chancellor of the Exchequer what is the estimated cost to the Exchequer of an increase of 1 per cent. in the retail price index in respect of statutory index-linked benefits and other obligations.

Mr. Biffen

At current rates the increase in public expenditure or reduction in revenue following an increase of 1 per cent. in the RPI for benefits and other obligations where the increase is or will be linked to the index by statutory provision is estimated to be

Pensions and other benefits £145 million
Income tax allowances and bands £150 million

It would not be possible without disproportionate effort to estimate the effect on payments which are not statutorily protected.

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