HC Deb 01 March 1993 vol 220 cc47-8W
Mr. Dewar

To ask the Secretary of State for Social Security if, on the basis of assumptions used in "Options for Equality in State Pension Age", he will publish figures estimating the cost of reintroducing earnings uprating for the retirement pension and other linked benefits beginning in April 1996, giving annual figures in 1992–93 prices over a 10-year period.

Miss Widdecombe

[holding answer 25 February 1993]: The table shows estimates of the cost of introducing earnings upratings with effect from April 1996 for retirement pensions and linked benefits—widow's pension, widowed mother's allowance, invalidity pension as well as unemployment and sickness benefits paid to those over state pension age. The consultation document on options for equality in state pension age assumes an annual increase in earnings of 1.5 per cent. greater than prices and this assumption has been used to derive the extra cost.

Year Extra cost (£ billion in April 1992 prices)
1996–97 0.5
1997–98 1.0
1998–99 1.5
1999–00 2.0
2000–01 2.5
2001–02 3.0
2002–03 3.5
2003–04 4.0
2004–05 4.6
2005–06 5.1

Note: Estimates derived from estimates underlying Tables 13 and 14 of the "National Insurance Fund Long Term Financial Estimates —Report of the Government Actuary on the Second Quinquennial review under Section 137 of the Social Security Act 1975", published in July 1990 (HoC 582).