§ Mr. NellistTo ask the Secretary of State for Social Security at what level the Christmas bonus for senior citizens would now stand if the original payment when first introduced in 1972 had been uprated by(a) the rise in retail prices or (b) the rise in average earnings; what is the estimated cost of paying the pensioners' Christmas bonus at £10 in the current year; what would be the cost of increasing it by (i) 50 per cent., (ii) 100 per cent., (iii) sufficient to take account of (a) and (iv) sufficient to take account of (b); and whether he has any plans for future increases in the payment.
§ Miss WiddecombeIf the Christmas bonus had been uprated each year since 1972 in line with the increase in retail prices it would now be worth approximately £52. If it had been uprated each year since 1972 in line with earnings it would now be worth approximately £70.
The estimated cost of paying the pensioners' Christmas bonus in 1990–91 is approximately £114 million. Increasing it by 50 per cent. would cost an extra £57 million; increasing it by 100 per cent. would cost an extra £114 million.
Increasing the Christmas bonus to £52 would cost an extra £479 million and increasing it to £70 would cost an extra £684 million.
We have no plans at present for increasing the payment.