HC Deb 28 February 1992 vol 204 cc648-9W
Mr. Nellist

To ask the Secretary of State for Social Security what would have been the cost in each year to public funds at 1992 prices to have maintained since November 1980 the system by which statutory up-rating of pensions was required to increase by whichever was the higher of prices or earnings.

Miss Widdecombe

The annual cost to the national insurance fund (at 1991–92 prices at £ millions) of uprating basic retirement pensions each year by prices or earnings whichever was higher in each year starting in November 1980 for each financial year is given in the table:

Financial Year Cost £ millions
1980–81 127
1981–82 552
1982–83 747
1983–84 833
1984–85 1,509
1985–86 1,679
1986–87 2,581
1987–88 3,769
1988–89 4,571
1989–90 5,430
1990–91 5,884
1991–92 6,271

There would be some offsetting savings in expenditure on income-related benefits.

The cost to the national insurance fund of these extra costs in 1991–92 would mean an increase of £8.70 per week in the combined national insurance contributions of a man on average earnings and his employer.

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