HC Deb 24 July 2002 vol 389 cc1539-40W
Mr. Peter Duncan

To ask the Secretary of State for Work and Pensions if he will make a statement on the level of the state pension since April 1998, in comparison with increases in(a) average earnings and (b) the retail price index. [714841

Mr. McCartney

[holding answer 22 July 2002]: Since April 1998, the rate of basic state retirement pension has increased from £64.70 to £75.50, an increase of 17 per cent.

If we had uprated the basic state retirement pension in the same period:

  1. (a) by average earnings, the increase would have been 19 per cent.;
  2. (b) by RPI, the increase would have been 10 per cent.

Paul Flynn

To ask the Secretary of State for Work and Pensions what the value would be of the 25 pence age addition to the retirement pension if it had been increased in each year since its introduction in line with(a) prices and (b) average earnings. [70233)

Mr. McCartney

The 25p age addition would be worth:

  1. (a) £2.19 per week had it been up-rated in line with prices; and
  2. (b) £3.77 per week had it been up-rated in line with earnings,

since its introduction in 1971.

These values relate to the value of the age addition for 2002–03.

However, it should be noted that since 2000 all pensioners aged over 75 receive free TV licences, currently worth £112 per year and of pensioners aged 80 or over, the poorest single pensioners are £1,000 a year better off, and couples almost £1,400 better off in real terms when compared with the 1997 system.

Notes:

1. The Office of National Statistics' "RP1: AI Items Index Table (table RP02)" has been used to up-rate in line with prices.

2. The Office of National Statistics' "Average Earnings Index for the Whole Economy" has been used to up-rate in line with earnings.