HC Deb 07 January 2004 vol 416 c386W
Steve Webb

To ask the Secretary of State for Work and Pensions if he will estimate the annual cost to the Exchequer, net of savings in means-tested benefits and additional income tax revenue, of paying state pensions in full at the rate of a Category A pension to every UK pensioner aged(a) 80 or over and (b) 75 or over, regardless of their contribution record. [145437]

Malcolm Wicks

The annual cost to the Exchequer from April 2004, net of savings in income related benefits and additional income tax revenue, of paying the state pension in full at the rate of a Category A pension to every UK pensioner aged:

  1. 80 or over is £0.66 billion
  2. 75 or over is £1.20 billion
  1. Figures are in 2003–04 price terms rounded to the nearest £10 million.
  2. Gross costs are estimated by the Government Actuary's Department and are consistent with Budget 2003 assumptions.
  3. The additional costs take into account income related benefit offsets, which are calculated using the DWP policy simulation model and April 2004 benefit rates.
  4. Additional income tax revenue is estimated by the Inland Revenue using 2004 tax rates