§ Ms HarmanTo ask the Secretary of State for Social Security what proportion of average earnings he estimates £175 constitutes at present; and what the figure will be in 2040, using the Government Actuary's assumptions about earning growth, in current prices. [19648]
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§ Mr. HealdThe figure of £175 a week represents 50 per cent. of average earnings for April 1996 and is projected to represent 26 per cent. of average earnings in 2040, assuming 1.5 per cent. real earnings growth up to that year.
§ Ms HarmanTo ask the Secretary of State for Social Security if people currently under 20 years old will have their basic state pension paid out of the national insurance fund when they retire under his basic pension plan. [19626]
§ Mr. HealdWhether anyone currently under 20 will be outside the new scheme will depend on the precise age limit for joining the scheme, to be determined nearer the time.
§ Ms HarmanTo ask the Secretary of State for Social Security if he will list in relation to paragraph 36 of the technical document on Her Majesty's Government's basic pension plus proposal, the gross cost of revenue forgone for every 10 years from 2000 to 2090. [19627]
§ Mr. HealdThe gross costs of new rebates under basic pension plus will rise on average by £330 million in each year following implementation, reaching some £15 billion a year by 2040 or later. Reversal of timing of tax reliefs for the generation covered by basic state pension plus will more than halve the impact on public finances. Thereafter, there would be a rapid decline in public expenditure on pensions as they are met from investments funded by rebates.