Pension Credit

HL Deb 21 January 2004 vol 657 cc139-40WA

Baroness Greengross

asked Her Majesty's Government:

What would be the cost in 2003–04 if the deemed income from capital for the pension credit was £1 per £1,000 of savings. [HL741]

The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Hollis of Heigham): The additional cost of pension credit in 2003–04 if deemed income from capital was £1 per £1,000 of savings is estimated to be £110 million.

Pension credit was introduced in October 2003. If it had been introduced for the full year of 2003–04, the additional cost of this change would have been about £210 million.

Notes

1. 1. Figure is rounded to the nearest £10 million.
2. 2. Estimates relate to the year 2003–04.