HC Deb 24 October 1994 vol 248 cc427-8W
Mr. Kirkwood

To ask the Secretary of State for Social Security (1) if he will publish the current value of the elderly persons' Christmas bonus if increased to a sum equivalent to the value of £10 in 1977 using the September increase in the RPI to calculate the current value;

(2) if he will publish the cost to the Exchequer of raising the elderly persons' Christmas bonus to 1994 prices and paying the bonus at the new value at Christmas 1994;

(3) whether he will consider increasing the elderly persons' Christmas bonus to a sum equivalent to the value of £10 in 1977 and allowing the annual increases thereafter in line with the increase in the RPI.

Mr. Arbuthnot

The Christmas bonus was first introduced in 1972 at the rate of £10 and is paid to about 13.1 million people. No Government have increased the bonus since. The equivalent value of £10 bonus in December 1977 at September 1994 prices is £30.36. The additional cost of raising the bonus from 1977 to 1994 prices would be approximately £267 million. We have no plans to increase the Christmas bonus.Note: Roundings to nearest 5 pence. Source: The Retail price Index (all items) as published by the Central Statistical Office.

Mr. Corbett

To ask the Secretary of State for Social Security what would now be the level of the £10 Christmas bonus paid to retirement pensioners adjusted in line with changes in the RPI since its introduction.

Mr. Arbuthnot

The lump sum £10 Christmas bonus was introduced in December 1972. If it had been increased in line with the movement in the RPI each year since its introduction the rate in December 1994 would be £65.70.

Source: The retail price index (all items) as published by the Central Statistical Office

Note:

  1. 1: Calculations for each step rounded to the nearest 5p.
  2. 2: December 1994 increase based on September 1992 to September 1993 RPI

Mr. Corbett

To ask the Secretary of State for Social Security what was the number of retirement pensioners eligible for the £10 Christmas bonus when introduced in 1973 and its cost to public funds; and what were the comparable figures at December 1993.

Mr. Arbuthnot

When it was first introduced in December 1972, the £10 bonus was paid to approximately 7.8 million retirement pensioners at a cost of £78 million. Comparable figures at December 1993 were 9.8 million retirement pensioners at a cost of £98 million.Source: DSS Statistics