HC Deb 02 February 1999 vol 324 cc562-3W
Mr. Webb

To ask the Secretary of State for Social Security if he will estimate the effect of linking the basic state pension for those aged over 75 years to earnings rather than prices on(a) gross expenditure on NI benefits, (b) expenditure on means-tested benefits and (c) income tax revenues in (i) 2005 and (ii) 2010. [67976]

Mr. Timms

[holding answer 28 January 1999]: The information is not available in the format requested. Such information as is available is in the table.

£ billion in 1999–2000 benefit rates
Expenditure 2005–06 2010–11
Basic Retirement Pension 2.2 3.9
Means-tested benefit offsets -0.7 -1.2

Notes:

1. Inland Revenue is not able to provide estimates for tax effects in the years in question.

2. Retirement Pension estimates have been provided by the Government Actuary's Department.

3. Increased rates are assumed payable to pensioners aged 75 and over at each of the given dates. Category BL rates were increased where the recipient is 75 or over, including cases where the spouse whose contribution record provides entitlement is under 75. Adult Dependency Increases paid in respect of women aged under 75 were not increased.

4. Estimates are rounded to the nearest £0.1 billion, but are not necessarily accurate to that degree.

5. Estimates of means-tested benefit offsets are illustrative and assume price uprating of Income Support. They are based on the 1995–96 Family Resources Survey and the Income Support Quarterly Statistical Enquiry. Possible future increases in income, other than the proposed increases in Basic Retirement Pension, have not been taken into account.