§ Mr. Dewar
To ask the Secretary of State for Social Security if he will estimate the cost of indexation for all social security benefits in 1994–95; and what would be the386W
net costs in addition to indexation of (a) raising all income-related benefits by 0.8 per cent., (b) raising all income-related benefits and the basic retirement pension by 0.8 per cent., (c) raising all benefits by 0.8 per cent., (d) giving all households on income support an extra £1 a week, (e) giving all households on income-related benefits 387W an extra £1 a week, (f) giving pensioners over 80 years of age on income support an extra £1 a week and (g) giving all households on income-related benefit and all retirement pensioners an extra £1 a week.
§ Mr. Hague
The information is in the table.
The costs in 1994–95 of increases to the income-related benefits and the basic state pension (£ million pa, 1994–95) Option Cost Full cost for all benefits of indexation in line with RPU/Rossi increases 1,820 (a) increase all income-related benefits (IRBs) by extra 0.8 per cent. 250 (b) increase all IRBs and RP/linked benefits by extra 0.8 per cent. 430 (c) increase all benefits by extra 0.8 per cent. 570 (d) increase IS personal allowances by £1 per week 410 (e) increase personal allowances in all IRBs by £1 per week 430 (f) increase IS higher pensioner premium by £1 per week 60 (g) increase all IRB personal allowances and RP/linked benefits by £1 per week 840
1. All estimates are at 1994–95 levels. They are based upon results from the 1993–94 policy simulation model, and should therefore be regarded as provisional.
2. Changes to the basic state pension have also been applied to those benefits that are statutorily linked (invalidity and widows' benefits).
3. It is assumed that the current links between benefit rates in IS and other income-related benefits are maintained. Thus, changes to IS allowances and premia have been assumed to feed through into HB/CTB and, where appropriate, FC.
4. In part (f), an extra £1 has been given to IS cases aged 80 and above by means of an increase in the higher pension premium.
5. Where RP and linked benefits are increased by £1 per week, it is assumed that the related rates of category B pension and adult dependency increases rise by 60p per week.
6. RPI/Rossi upratings in April 1994 are assumed to be 1.8/3.5 per cent.