§ Mr. DewarTo ask the Secretary of State for Social Security on the basis of the assumptions used in "Options for Equality in State Pension Age", what he estimates(a) the upper earnings limit and (b) the lower earnings limit for national insurance contributions will be, as a percentage of average earnings in (i) 2015, (ii) 2025, (iii) 2035 and (iv) 2045.
§ Miss WiddecombeThe information is given in the table.
Earnings limit Percentage Lower Upper 2015–16 12.2 91.4 2025–26 10.5 78.6 2035–36 9.1 67.9 2045–46 7.8 58.5 Assumes real earnings growth of 1.5 per cent. per annum.
§ Mr. DewarTo ask the Secretary of State for Social Security if he will estimate the direct costs savings which would arise from equalising the pension age at 65 years for men and women during each year of the phasing-in period, assuming that the new age is phased in beginning in(a) 2003 and (b) 2010; and that phasing-in takes place at a rate of (i) one year in one, (ii) one year in two, (iii) one year in three, and (iv) one year in four.
§ Miss WiddecombeThe savings' which would accrue from equalising the state pension age for women and men at age 65 assuming that the phasing begins in 2010 at the rate of one year in three (option (b) (iii)) are given in the table. Other information is not available and could be produced only at disproportionate cost. Amounts are given rounded to the nearest £100 million and, in common with those given in "Options for Equality in State Pension Age", at 1991–2 prices.
25W
Amount saved in each year Year £ million 2010 2— 2011 2— 2012 500 2013 600
Year £ million 2014 600 2015 1,100 2016 1,200 2017 1,300 2018 1,800 2019 2,000 2020 2,100 2021 2,700 2022 2,800 2023 2,900 2024 3,400 2025 3,500 2 Savings less than £100 million. Notes:
Percentage 2015–16 2025–26 2035–36 2045–46 Basic pension 12.2 10.5 9.1 7.8 Average additional pension (women) 13.8 12.7 12.7 11.8 Average additional pension (men) 20.3 16.9 14.4 12.9 Notes: The additional pension percentages are based on the amount of SERFS payable in each respective year to an individual whom had average earnings in every year of his or her working life. They are not based on average AP awards to new pensioners as these cannot be estimated.
Assumes real earnings growth of 1.5 per cent. per annum.