§ Mr. DenhamTo ask the Chancellor of the Exchequer what is the net present cost in 1996 prices of tax relief on contributions made to appropriate personal pensions since 1988–89 assuming the social discount rate used by his Department. [13840]
§ Mr. Jack[holding answer 4 February 1997]: The net present cost of income tax relief for the years 1988–89 to 1995–961 in respect of contributions to appropriate personal pensions is given in the table, split between national insurance fund contributions and contributions above this minimum made by employees and employers. The figures are in 1996–97 prices rounded to the nearest £0.1 billion, and have been calculated using the GDP deflator and a real discount rate of 3.75 per cent. in line with that underlying the Government Actuary's report on occupational and personal pension schemes, Cm 3221.
NIF contributions Employee/employer contributions Total contributions £ billion £ billion £ billion Net present cost of income tax relief paid 2.0 2.3 4.3 1 The cost of income tax relief for 1995–96 is provisional.