HC Deb 09 June 1980 vol 986 c40W
Mr. Cockeram

asked the Minister for the Civil Service what is her estimate of the cost of paying index-linked pensions to retired civil servants in each of the next 10 years if inflation were to be at the rate of 10 per cent. per annum compound.

Mr. Channon

Pensions increase maintains the original value of pensions but does not add to the cost of providing them in real terms. At 1980 prices, the provision in published estimates for the total cost of Civil Service pensions is £662 million in 1980–81. On the basis of the plans set out in the White Paper "The Government's Expenditure Plans 1980–81 to 1983–84", Cmnd. 7841, this expenditure would rise to about £800 million in 1983–84, at 1980 prices. I regret that estimates are not available for later years.