§ Mr. WelshTo ask the Secretary of State for Social Security if he will estimate the cost of increasing the basic state pension for persons over(a) 75 and (b) 80 to the level of the minimum income guarantee. [126673]
§ Mr. RookerThe information is in the table.
Estimated costs of increasing the basic state pension £million 2001–02 75 and over 80 and over Gross 3,600 2,400 Net of means-tested benefits 2,600 1,600 Notes:
1. It is assumed that the Category A rate of basic Retirement Pension is raised to the level of the Minimum Income Guarantee in 2001–02 (assumed to be £84.80 for those aged 75 to 79, and £90.20 for those aged 80 and over).
166W2. It is assumed that basic Retirement Pension recipients with entitlement of less than the full Category A rate receive a pro-rata increase, except married women in receipt of the Category BL pension, who receive an increase such that the Category A and Category BL pension together are equivalent to the appropriate couple rate of the Minimum Income Guarantee.
3. These estimates include a saving of £30 million from the removal of the 25p age addition currently paid to those aged 80 and over.
4. Costs are rounded to the nearest £100 million and are in 2000–01 prices.
5. Costs include benefits whose rates are linked by statute to the rate of basic Retirement Pension.
6. Gross costs are estimated by the Government Actuary's Department. Costs net of means-tested benefit savings have been estimated using the Policy Simulation Model.