§ Dr. Lynne JonesTo ask the Secretary of State for Social Security what estimate he has made of the additional annual cost of the second pension in(a) 10, (b) 15, (c) 20 and (d) 25 years' time. [71372]
§ Mr. TimmsThe information is in the table.
The estimated gross public expenditure costs of the state second pension £ billion 1998–99 prices Year SERPS SSP Difference, net of Income Related Benefit effects 2010 9.4 9.0 -0.4 2015 11.0 10.7 -0.4 2020 12.0 11.9 -0.3 2025 13.2 13.8 0.0 Notes:
1. This shows the net public expenditure effects of the difference between the costs of SERPS and Second State Pension (SSP), taking into account the effects of income related benefits.
2. The SSP figures include all expenditure on State second-tier pensions, including SERPS pensions already in payment and pre-2002–03 SERPS accruals yet to come into payment.
3. These figures exclude the effect of the introduction of stakeholder pensions, which is expected to lead to higher levels of contracting out.