§ Mr. Johnasked the Secretary of State for Social Services what would be the cost of paying retirement pensions, gross and net, to all those of 60 years and older, assuming all those eligible to retire at that age did so.
§ Mr. Rossi[pursuant to his reply, 25 January 1982, c. 283]: On the assumptions specified in my reply to my hon. Friend the Member for Horsham and Crawley (Mr, Hordern) on 19 November—[Vol. 13, c. 230–31]—the net annual cost to central Government funds is estimated to be £2, 500 million. On the same basis the gross cost, namely the additional cost of retirement pensions, the loss of national insurance contributions, the loss of surcharge, National Health Service, redundancy fund and maternity pay fund contributions and loss of income tax revenue, is estimated to be £3, 400 million annually. These estimates assume that a proportion of men and women will continue to work after pension age without immediate change to their benefit, tax or contribution position. A complex set of new calculations at disproportionate cost would be required to work out the effects on tax, contributions and benefits if all those now deferring retirement or otherwise working after pension age ceased to do so.