§ Mr. WebbTo ask the Secretary of State for Social Security if he will estimate, for each of the next 20 years, the size of the gap in pounds per week between the basic state pension and the minimum income guarantee, assuming price indexation of the basic pension and earnings indexation of the minimum income guarantee. [82056]
§ Mr. TimmsWe have announced our intention to update the basic state pension annually at least in line with prices, and to increase the minimum income guarantee over time, as resources allow, in line with earnings. The information requested on the basis of the assumptions stated in the question is in the table.
Difference between the basic state pension and minimum income guarantee for a single pensioner aged 65 Year Difference (£) 1999 8.25 2000 9.35 2001 10.50 2002 11.70 2003 12.85 2004 14.05 2005 15.25 2006 16.50 2007 17.75 2008 19.00 2009 20.30 2010 21.60 2011 22.90 2012 24.25 2013 25.65 2014 27.00 2015 28.40 2016 29.85 2017 31.30 2018 32.75 2019 34.25 Notes:
- 1. The difference is shown in constant April 1999 prices.
- 2. The figures assume that earnings grow by 1.5 per cent. per year above prices.
- 3. Figures rounded to the nearest £0.05.