HC Deb 10 December 1997 vol 302 cc602-3W
Mr. Webb

To ask the Secretary of State for Social Security what would be the effect of(a) an increase in the pension age addition for the over-80s from 25 pence to £5, (b) the introduction of a new pension age addition of £3 for those aged 75 to 79 and (c) both (a) and (b) together on (i) gross pension expenditure, (ii) income tax revenues and (iii) expenditure on means-tested benefits; and what would be the overall effect on the Exchequer in each case. [18370]

Mr. Denham

The information is set out in the table.

Age additions in 1997–98
£ million
(a) Age addition for over 80s of £5 (b) Age addition for 75–79s of £3 Both (a) and (b)
Gross costs 600 310 910
Income-related benefit offset -250 -90 -330
Income tax offset -40 -20 -60
Net Exchequer cost 310 210 520


Gross costs provided by Government Actuary's Department. Net costs taking account of income related benefit offsets have been calculated by the Department of Social Security Analytical Services Division. The income tax offset has been provided by Inland Revenue.


Figures are rounded to the nearest £10 million.

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