§ Ms Oona KingTo ask the Secretary of State for Social Security what estimate he has made of the cost of restoring the link between the basic state pension and average earnings in the UK. [105250]
§ Mr. RookerThe information is in the table.
Estimated cost of uprating retirement pension by earnings from April 2000 £ million Gross Costs Net Costs With linked benefits 2000–01 1,300 1,000 2010–11 8,500 7,500 Without linked benefits 2000–01 1,100 850 2010–11 7,500 6,500 Notes:
1. Gross costs have been calculated by GAD. Net costs have been calculated using the 1999–2000 Policy Simulation and PENSIM models to take account of means-tested benefit offsets.
2. Estimates for the year 2000–01 have been rounded to the nearest 50 million, and for 2010–11 to the nearest 100 million. Estimates are in 1999 prices.