§ Adam PriceTo ask the Secretary of State for Work and Pensions what assessment he has made of how much the state pension will be worth over the next 50 years. [79745]
§ Mr. McCartneyThe Government believe that the State Pension should remain the essential foundation of income in retirement.
The basic State Pension is currently £75.50 for single pensioners. In the short-term we have given the guarantee that the basic State Pension will be increased by at least £100 a year for single pensioners and £160 a year for couples in 2003–04. In future years, the basic State Pension will be increased by 2.5 per cent. or the increase in the September Retail Prices Index, whichever is the higher.
Based on current policy, we estimate that the rate of the basic State Pension will be around £76.25 in 50 years time in today's prices.