§ Mr. Gordon PrenticeTo ask the Secretary of State for Social Security if she will estimate the cost of uprating to 1998 prices the £10 Christmas bonus as originally introduced on the basis of providing it(a) to all pensioners, (b) to pensioners other than higher rate taxpayers and (c) to pensioners other than standard and higher rate taxpayers. [49954]
§ Mr. DenhamThe estimated cost of uprating the £10 Christmas bonus to 1998 prices on the basis of providing it to:
£ million (a) All pensioners 700 (b) Pensioners other than higher rate taxpayers 700 (c) Pensioners other than basic and higher rate taxpayers 600 (d) Pensioners other than lower, basic and higher rate taxpayers 450 Notes
1. All figures in 1998–99 prices and rounded to the nearest £50 million
2. The uprated levels of Christmas Bonus were calculated using the Retail Prices Index (All items). The value of the bonus has been rounded to the nearest 5 pence at each uprating
3. Estimates for the number of pensioners who pay tax were provided by Inland Revenue (IR), although it is not possible to determine whether a particular individual is a higher rate or basic rate taxpayer for the relevant year at the time the Christmas Bonus is paid. Due to the fact that in sections (b)—(d), the rounded estimates provided by IR were applied to the total extra cost, the figures should be treated with a degree of caution