HC Deb 03 July 2000 vol 353 cc14-5W
Mr. Webb

To ask the Secretary of State for Social Security, pursuant to his answer of 27 June 2000,Official Report, column 480W, on the state pension, if he will estimate the cost of Option (b), an increase of £5 in the rate of the basic state pension and the introduction of age additions of £5 for pensioners aged 75 to 79 and £10 for pensioners aged 80 years or over, on the basis that the age additions for those aged 75 to 79 or 80 years and over are paid in full, regardless of contribution record. [128605]

Mr. Rooker

The information is in the table.

£ billion
Gross Net of means-tested benefits and income tax
2001–02 4.6 3.1
2002–03 4.7 3.2
2003–04 4.7 3.2
2004–05 4.8 —
2005–06 4.8 —

Notes:

1. Figures include the cost of benefits whose rates are linked to the rate of basic Retirement Pension.

2. Figures are rounded to the nearest £0.1 billion and are in 2000–01 price terms.

3. Gross costs estimated by the Government Actuary's Department. Costs net of income-related benefit savings are estimated using the Policy Simulation Model. Income tax revenues estimated by the Inland Revenue.

4. Estimates of income tax revenues not available beyond 2003–04.

5. Age related increase uprated in line with RPI, as in previous reply.

Ms Roseanna Cunningham

To ask the Secretary of State for Social Security what the annual cost would have been in respect of pensioners in Scotland if the level of the state pension for(a) single pensioners and (b) couples had been uprated in line with earnings from May 1997. [128064]

Mr. Rooker

The information is not available in the format requested. Such information as is available is shown in the table.

Gross cost of uprating the basic state pension in line with earnings for pensioners in Scotland from April 1998
£ million
Gross cost
1998–99 20
1999–2000 70
2000–01 200

Notes:

1. Costs estimated by the Government Actuary's Department are in 2000–01 price terms. Estimates are rounded to the nearest £10 million.

2. Costs include those benefits whose rates are linked to the rate of basic retirement pension.

3. Assumed rates of earnings growth are based on the seasonally adjusted average earnings index for the three months to July of the previous year, as originally published.

4. Separate estimates for singles and couples are not available.

5. Costs net of means-tested benefit savings are not available.