§ Mr. DenhamTo ask the Secretary of State for Social Security what estimate he has made of the cost in the first year of introducing age-related rebates to appropriate personal pensions as proposed in his current consultation document; and what would be the cost if the proposed levels were raised by(a) 0.25 per cent., (b) 0.5 per cent., (c) 0.75 per cent., (d) 1 per cent., (e) 1.25 percent., (f) 1.5 per cent., (g) 1.75 per cent. and (h) 2 per cent. of allowable earnings. [13958]
§ Mr. HealdThe information is in the table.
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Additional rebate (per cent. upper band earnings) Total cost 1997–98 (£ million) Cost above 1997–98 baseline (£ million) Baseline 1,885 n/a 0.25 1,970 85 0.50 2,045 160 0.75 2,125 240 (2) if he will estimate the total of income support, housing benefit and council tax, or equivalent benefits applicable at the time paid to pensioners expressed as a percentage of (a) gross domestic product and (b) the total personal incomes of the population as a whole in each year since 1979. [1396]
Mr. Heald: The information is in the tables.
Additional rebate (per cent. upper band earnings) Total cost 1997–98 (£ million) Cost above 1997–98 baseline (£ million) 1.00 2,200 315 1.25 2,275 390 1.50 2,350 465 1.75 2,430 545 2.00 2,505 620 1. The figures are in respect of 1997–98 accruals. Costs would not arise until 1998–99 because rebates for appropriate personal pensions (APPs) are paid in arrears. The figures have been calculated in 1994–95 price terms.
2. The "baseline" figures reflect the proposed age-related rebates for APPs set out in the Government Actuary's consultative note on contracting-out terms issued in August 1995.
3. The costings assume the same age and earnings distribution and numbers of individuals in APPs under each of the proposed set of rebate levels shown.