HC Deb 10 March 1983 vol 38 c482W
Mr. Field

asked the Secretary of State for Social Services if he will estimate the cost of raising retirement pensions to a third and a half of (a) gross and (6) net average earnings.

Mr. Rossi

The estimated cost of increasing retirement pension for a single person to a third of gross average earnings and that for a married couple to a half of gross average earnings would be £12 billion in a full year—based on average weekly earnings in November 1982. The corresponding cost if average earnings net of tax and national insurance contributions were used would be £2 billion. Both figures include the effect of increasing other long-term benefits by the same percentage as retirement pension.

Mr. Field

asked the Secretary of State for Social Services if he will estimate the cost of increasing pensions by an additional £1.45 for a single person and £2.25 for a married couple.

Mr. Rossi

If retirement pensions were increased by £1.45 for a single person and £2.25 for a married couple, and if all other long-term benefits were increased by the same amount, the estimated cost would be about £850 million in a full year.