§ Mr. Alan CampbellTo ask the Secretary of State for Social Security what estimate has been made of the cost of not implementing the proposed change to SERPS from April 2000 in each of the next three years. [93286]
§ Mr. TimmsThe information is in the table.
The estimated gross SERPS costs £ million Year Estimated gross costs 2000–01 60 2001–02 170 2002–03 280 Notes:
- 1. Costs are supplied by the Government Actuary's Department.
- 2. No allowance has been made for income related benefit offsets.
- 3. Costs are rounded to the nearest £10 million and are at 1998–99 rates.
- 4. Costs include SERPS pension paid to widows and widowers above State pension age and to widows below State pension age.
- 5. The estimates are based on current legislation.
- 6. Real earnings growth of 1.5 per cent. has been assumed.
Comparison between the values of capital limits if uprated by different indices 1 £ Income Support April 1988 Housing Benefit April 1988 Council Tax Benefit April 1990 2 Benefit and date of introduction Lower Higher Lower Higher Lower Higher Rate of capital limits at date of introduction 3,000 6,000 3,000 6,000 3,000 16,000 Rate if uprated by prices since introduction3 4,627 9,255 4,627 9,255 4,201 22,406 Rate if uprated by higher of prices and earnings since introduction 5,611 11,221 5,611 11,221 4,701 25,071 Rate of capital limits at April 1990 3,000 8,000 3,000 16,000 3,000 16,000 Rate if uprated by prices since April 1990 4,201 11,203 4,201 22,406 4,201 22,406 Rate if uprated by higher of prices and earnings since April 1990 4,701 12,536 4,701 25,071 4,701 25,071 1 The ROSSI index is used to uprate Income Related Benefits. Figures have been rounded to the nearest pound. 2 In April 1990, Community Charge Benefit was introduced in England and Wales. In April 1993, this was replaced by Council Tax Benefit. 3 For Income Related Benefits (IRBs), the percentage used to uprate benefits in April 1994 was 3.9 per cent. not 3.5 per cent. as shown in the Annual Abstract of Statistics, to take account of VAT on fuel.