§ Mr. FlynnTo ask the Secretary of State for Social Security how much higher the basic pension for a person now aged 85 years would be if it had been increased in line with average earnings. [116]
§ Mr. DenhamIf the Basic State Pension had been increased in line with the higher of earnings or prices since 1980, the standard rate, which would apply to all those over State Pension age, would now be £86.00 a week, £23.55 higher than the current standard rate. Those aged over 80 would also receive the 25p per week age addition.
Notes:
1. All calculations are rounded to the nearest 5p at each uprating date.
2. The alternative uprating has been calculated using either the Average Earnings Index (Whole economy unadjusted) as published by the Office for National Statistics of the Retail Prices Index (all items), whichever was the higher.
§ Mr. FlynnTo ask the Secretary of State for Social Security when the pensions review will commence; what form it will take; and what arrangements will be made to ensure that the views of pensioners are heard. [113]
§ Mr. DenhamWe propose to announce details of the review shortly.
§ Mr. FlynnTo ask the Secretary of State for Social Security what is the present value of the basic retirement pension as a percentage of average earnings; and what it will be in (i) 2000, (ii) 2010, (iii) 2020, (iv) 2030 and (v) 2040 if it is increased only in line with prices. [115]
104W
§ Mr. DenhamThe information is in the table.
Year Standard rate basic retirement pension as a percentage of average earnings 1996 17.4 2000 16.4 2010 14.1 2020 12.2 2030 10.5 2040 9.0 1. Percentages are rounded to the nearest 0.1 per cent.
2. 1996 figure is calculated compared with the average earnings of all full time employees taken from the New Earnings Survey.
3. Forecast figures are based on the assumption that the real value of the standard rate of basic retirement pension remains unchanged while average earnings increase by 1.5 per cent. more per year than the Retail Prices Index.