Mr. Alan WilliamsTo ask the Secretary of State for Social Security what would have been the difference in cost to the Exchequer if the state pension had been linked to earnings since 1 May 1997. [127618]
§ Mr. Rooker:The information requested is in the table.
306W
£ million Gross Net of income-related benefits 1998–99 220 160 199–2000 790 600 2000–01 2,150 1,640 Notes:
1. Costs assume earnings uprating begins at the next uprating date following 1 May 1997 (April 1998).
2. Figures are rounded to the nearest £10 million and are in 2000–01 price terms.
3. Gross costs estimated by the Government's Actuary's Department. Costs net of income-related benefit savings are estimated using the Policy Simulating Model.
4. Average earnings assumptions are based on an average of seasonally adjusted figures for the three months to July of the previous year, as originally published.