HC Deb 27 June 1991 vol 193 cc530-1W
Mr. Battle

To ask the Secretary of State for Social Security what would be the cost in 1991–92 of increasing the basic retirement pension by £5 per week for a single pensioner and £8 a week for a married couple, assuming similar increases in linked benefits and in income-related benefits for pensioners, giving figures(a) gross and (b) net of tax revenues and savings in other benefits.

Miss Widdecombe

The gross cost would be £3.1 billion. Net of income tax, the figure would be £2.9 billion. If those in receipt of a linked benefit but not the pensioner premium did not receive a similar increase in their income-related benefit, the net cost would fall to £2.8 billion.

Mr. Meacher

To ask the Secretary of State for Social Security what is the cost, net of savings in tax, of uprating the retirement pension, income support pension premium and housing benefit pensioner premium by £5 per week for single pensioners and £8 per week for pensioner couples in 1991–92; and if he will set out for linked benefits the cost in 1991–92 that would arise from these changes.

Miss Widdecombe

The gross cost of increasing these and the linked contributory benefits by £5 for a single pensioner and £8 for a pensioner couple is £3.1 billion. The cost, net of tax, would be £2.9 billion; this includes £0.5 billion to increase the linked benefits.

Mr. Meacher

To ask the Secretary of State for Social Security which benefits have a statutory requirement to link(a) the level of benefit to the retirement pension level and (b) the level of increase at uprating to the same level of increase for retirement pension.

Miss Widdecombe

The following benefits are paid at rates which are linked by statute to that of the retirement pension: widow's pension, widowed mother's allowance and invalidity benefit. Unemployment benefit and sickness benefit are also linked for certain categories of recipient over pensionable age. The Secretary of State has a statutory duty to review the value of the category A retirement pension on an annual basis and increase it if appropriate; if the pension rate is increased the level of the above benefits will be raised also.