§ Mr. KirkwoodTo ask the Secretary of State for Social Security (1) pursuant to his answer of 3 February,Official Report, column 96, what would be the net cost to the Exchequer of raising the basic state pension in 1992–93 to £59.15 per week for single pensioners and £95.70 per week for married couples on the same basis as given in that answer, after taking into account extra income tax receipts and off-setting savings on expenditure on income-related benefits;
(2) what would be the net cost to the Exchequer, after taking into account higher tax receipts and savings on expenditure on income-related benefits, of increasing the basic state pension in 1992–93 to £59.15 per week for single people and to £94.70 per week for married couples, on the basis that the increased pensions were paid to all regardless of contributory record.
§ Mr. Jack[holding answer 7 February 1992]: Information on the savings on income-related benefits is not yet available for 1992–93 in the form requested. However, using existing basic pension rates increased by £5 per week for a single person, giving £57 and £8 per week a married couple, giving £91.25, costings comparable with 1992–93 can be made.
For 1991–92 the gross cost would be £3.9 billion with offsetting savings of £1.0 billion on income-related benefits. Income tax receipts would rise by £0.2 billion. The net cost to the Exchequer would be £2.7 billion. The combined cost of this increase in national insurance contributions to a man on full-time average earnings and his employer would be £5.20 per week in 1991–92.