§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what is his latest estimate of the aggregate annual cost to public funds of index-linked transfer payments; and what is his estimate of the increase in such payments resulting from an increase of 33⅓ per cent. in the world price of oil, via the retail price index.
§ Mr. Lawson[pursuant to his reply, 20 December 1979, c. 341]: Pensions and social security benefits are the main categories of index-linked expenditure. For 1979–80, the latest estimate of these payments is about £17 billion. The impact of higher crude oil prices on retail prices and hence on index-linked transfer payments is highly uncertain. It will depend on the extent to which, and speed with which, increased oil prices are passed on, and on how other imports costs are affected by any change in sterling exchange rates.