HC Deb 24 November 1987 vol 123 c181W
Sir David Price

To ask the Secretary of State for Social Services what is his current estimate of the net cost to public funds of introducing a system of flexible retirement age for men and women alike between the ages of 60 and 65 years on the lines of the earlier Select Committee on Social Services recommendation and of the private Member's Bill introduced by the hon. Member for Eastleigh in 1983.

Mr. Scott

lt is extremely difficult to estimate the cost of such a scheme, because the cost depends very much on the extent to which individuals opt for abated pension before age 63, the precise arrangements for abatement and interaction with other benefits. The latest estimate, based on 1985/86 benefit rates, is that the net annual cost to public funds of equalising pension age at 63 would be of the order of £800 million. An interdepartmental group of officials is currently re-examining the economic assump-tions on which the estimated costs are based.

Sir David Price

To ask the Secretary of State for Social Services when, pursuant to his answer to the hon. Member for Redcar (Miss Mowlam),Official Report, 27 October 1987, column 245, Her Majesty's Government began their examination of the social and economic implications of proposals for equalising the age of eligibility between men and women for the basic state retirement pension; when they expect to reach conclusions; and if he will make a statement.

Mr. Scott

Work on reappraising the cost and economic implications of changes in pension age has been proceeding since 1986, together with a general consideration of various options. We expect that conclusions will be reached in 1988.