HC Deb 22 November 1991 vol 199 cc321-2W
Mr. Meacher

To ask the Secretary of State for Social Security if he will update his answer of 20 March 1990,Official Report, column 597, on the gross cost of uprating the retirement pension by average earnings in each year since 1980–81 at 1991 prices.

Miss Widdecombe

[holding answer 5 November 1991]: The information is given in the table, based on 1991–92 prices.

It is only possible to estimate the net cost for the current year, 1991–92, in which it would have been £4.43 billion allowing for a reduction of £0.28 billion of income support; £0.26 billion of community charge benefit; and £0.72 billion of housing benefit.

Estimated extra cost of retirement pension with upratings in line with average earnings1
Financial year Gross cost (£ billion)2
1980–81 0.13
1981–82 0.51
1982–83 0.64
1983–84 0.72
1984–85 1.37
1985–86 1.53
1986–87 2.41
1987–88 3.56
1988–89 4.35
1989–90 5.20
1990–91 5.65
1991–92 5.69
1 Actual average earnings, whole economy.
2 1991–92 prices.