§ Mr. O'HaraTo ask the Secretary of State for Social Security what would be the value of the 25p age addition to the state pension in 1998–99 if it has been uprated in line with(a) prices and (b) earnings since its introduction; and if he will estimate how much it would cost to increase it to those levels. [16543]
§ Mr. DenhamThe value of the 25p age addition to the State Pension in 1998–99 would be £1.75 if uprated in line with prices and £3.95 if uprated in line with earnings, since its introduction.
The table shows the estimated additional gross and net costs of paying the age addition at these levels for 1998–99. All costs are rounded to the nearest £10 million.
£ million Age addition in 1998–99 Uprated by prices Uprated by earnings Gross cost 190 460 Net cost 110 270 1. The figures for the value of the age addition were calculated using the Retail Price Index (All items) and the Average Earnings Index (Whole Economy) as supplied by the Office for National Statistics. The figure for September 1997 earnings is provisional. The value of the age addition has been rounded to the nearest 5 pence at each uprating. 2. The gross costs were estimated by Government Actuary's Department. The net costs by the Department of Social Security.