§ Mr. Chris SmithTo ask the Secretary of State for Social Security, pursuant to his answer to the hon. Member for Harlow (Mr. Hayes) of 18 March,Official Report, column 17, what would be the estimated cost to the Exchequer of paying the age-related premium on the basic pension in a lump sum at the same fixed point in the year for all pensioners. [23603]
§ Mr. HealdThere would be no cost to the national insurance fund as the effect of paying some individuals in advance would be counterbalanced by the effect of paying other individuals in arrears.
If the lump sum is not treated as weekly income for the purposes of calculating entitlement to income-related benefits, the timing of payment would not affect the impact on income-related benefits expenditure.
Source: Government Actuary's Department.