§ Mr. KirkwoodTo ask the Secretary of State for Work and Pensions if he will calculate the total cost of the basic state pension if it were increased to minimum income guarantee levels for(a) over 75s and (b) over 80s, and increased in line with earnings until (i) 2010, (ii) 2020, (iii) 2030, (iv) 2040 and (v) 2050 (a) in real terms and (b) expressed as a proportion of gross domestic product. [66219]
§ Mr. McCartneyThe information requested is in the table.
764W
Real terms (£ billion) As percentage of GDP Cost of BSP assuming it is increased to MIG levels for over 75s and earnings uprated 2010 51 4.3 2020 62 4.4 2030 85 5.0 2040 109 5.4 2050 127 5.3 Cost of BSP assuming it is increased to MIG levels for over 80s and earnings uprated 2010 48 4.0 2020 56 3.9 2030 74 4.4 2040 89 4.4 2050 105 4.4 Notes:
1. Real term figures are in 2002–03 price terms.
2. It is assumed that the basic state pension will rise by 2.5 per cent. or inflation, whichever is the greater.
3. Long term earnings growth is assumed to be 1.75 per cent. and long term GDP growth is assumed to be 1.75 per cent. to be consistent with the earnings assumption.