§ 43. Mr. Yeoasked the Secretary of State for Social Services what is his latest forecast for the cost of the state earnings-related pension scheme in 1990 and 2000.
§ Mr. WhitneyThe latest estimate is that made by the Government Actuary in his 1982 quinquennial review. On the assumption that earnings and earnings limits increased at 8 per cent. a year from 1985–86 and that earnings-related pensions increased at 6 per cent. a year from the date of award, the cost of earnings-related additional component for retirement pensioners would be £479 mi lion in 1990–91 and £1,787 million in 2000–01 at 1981–82 earnings levels.
(Source: National Insurance Fund Long Term Financial Estimates, HMSO 1982, Appendix H).