§ Mr. Rentonasked the Minister for the Civil Service what was the cost to the taxpayer of inflation-proofing Civil Service pensions in each of the last five financial years; and what is the expected cost in the current financial year and in the year to April 1981.
§ Mr. ChannonIt is estimated that the additional cost over the first full year—it declines progressively thereafter—of implementing increases in Civil Service pensions under the Pensions (Increase) Act 1971—as amended—was as follows:
Year Main percentage increase First year's cost £ million 1972 9.9 9 1973 9.3 10 1974 16.5 21 1975 261 41 1976 13.8 31 1977 17.7 48 1978 7.4 25 1979 16.0 61 These figures exclude the offsetting effect on public expenditure of the pension contributions made by civil servants both directly and by reductions in salary levels. The cost of increases after November 1979 will depend on the estimated increase in prices from one uprating date to the next.