§ Mr. Johnasked the Secretary of State for Social Services if he has completed his examination of the declaration of intent of the National Pensioners Convention; and what estimate he has made of the net cost of these proposals.
§ Mr. RossiI have already made it clear to the National Pensioners Convention that implementation of the declaration of intent is ruled out by the very heavy costs involved. It is not feasible to put a specific cost on some of the proposals of the declaration; however, the overall public expenditure cost of full implementation is estimated to be of the order of £15 billion-£20 billion a year. The order of magnitude of the individual proposals are set out as follows:
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Cost of implementing the declaration of intent Proposal and comment Annual Cost £ million 1. Pension of >½ and ⅓ gross average earnings for couple and single person respectively Cost also includes other linked long-term benefits *11,500 2. Six monthly up-rating
Proposal and comment Annual Cost £ million Each 1 per cent, increase in pension and other long- term benefits brought forward to May would cost £80 million in 1982–83; say 5 per cent. *400 3. Adequate heating allowance covering all fuel Examples (a) abolition of gas and electricity standing *250 charges for pensioners; (b) extending supplementary benefit lower rate of heating or addition to all pensioners households (minimum estimate) *380 4. Index linked Christmas bonus of £20 Each additional £1 on the bonus costs £10 million *100 5. Reducing pension age to 60 and abolition of earnings rule Cost of lowering male pension age rises in longer **2,500 terms with new pension scheme and lower levels **45 of unemployment. Estimate on earnings rule in (at 1980 respect of present pension age. prices) 6. Adequate death grant for everyone Estimate for restoring death grant to original value, in respect of all deaths. (£190) *110 7. Free health care on demand Unquantifiable — 8. Availability of community and personal social services Unquantifiable — 9. Appropriate accommodation including choice Unquantifiable — 10. National scheme of travel concessions Estimate is the minimum 100 11. Access to education and leisure facilities Unquantifiable — Total (Absolute minimum) 15,000 * These figures all relate to additional benefit costs which would increase public expenditure by the amounts shown. ** These figures relate to the net cost to the Exchequer after allowing for the higher benefit costs and taking account of the effects on income tax and national insurance contributions.