HC Deb 27 October 2003 vol 412 c43WS
Mr. Flight

To ask the Chancellor of the Exchequer in relation to the estimation of the cost of pensions under the Whole of Government Accounts, what excess of the discount rate over the rate of price inflation has been applied to future liabilities; and what the typical corresponding rate is that is used by the private sector under FRS17. [130884]

Ruth Kelly

In my answer of 14 October 2003,Official Report, column 5W, I said on advice that the majority of private sector schemes reporting under FRS 17 used a discount rate clustered around 5.6 per cent. real. I have since been advised that this rate is, in fact, the nominal discount rate. The average real rate underlying this rate is 3.3 per cent. I very much regret having inadvertently given incorrect information in my earlier answer.