§ Mr. Gordon Brownasked the Secretary of State for Social Services what would be the total saving in each year until 2,000 from the abolition of the state earnings-related pension scheme.
§ Mr. Whitney[pursuant to his reply, 25 March 1985, c. 92.]: The costs of the state earnings-related pension scheme depend crucially on the pattern of earnings levels and upratings, especially in the longer term future. The estimated costs of the earnings-related component payable with retirement pension, invalidity pension and widow's benefit, on the basis of the central assumptions described in "Population, Pension Costs and Pensioners' Incomes", expressed in constant prices at 1984–85 levels are as follows:
£ billion 1985–86 ¼ 1990–91 1 1995–96 2¼ 2000–01 4½ Figures for the intervening years are not readily available. These sums do not represent the savings which would arise from abolition of the state earnings-related pension scheme since they take no account of the decisions which would need to be taken about the treatment of additional component already in payment or the treatment of accrued rights.