§ 17. Mr. Simon CoombsTo ask the Secretary of State for Social Security what estimate he has made of the cost of allowing people to claim a full state pension from the age of 60 years. [19715]
§ Mr. HealdThe estimated cost of allowing people to claim a full state pension from the age of 60 is £15 billion in 2025 and £12 billion in 2035.
Notes
1. These costs are based on estimates of an equal state pension age of 65 published in "Pensions Bill 1994, Report by the Government Actuary on the Financial Provisions of the Bill on the National Insurance Fund" (December 1994 Cm 2714), and on estimates of an equal state pension age of 60 published in "Options for Equality in State Pension Age" (December 1991, Cm 1723). All estimates have updated to 1995–96 prices, and do not take account of changes to invalidity benefit and contracting-out since then.
2. The change in SPA is assumed to be implemented from 2010 to 2020.
3.Costs assume that the proportion of men who claim basic retirement pension at age 65 at present would claim at age 60 under the proposed scheme.