§ Mr. WebbTo ask the Secretary of State for Social Security if he will estimate the cost in each of the five financial years beginning with 2001–02 of(a) linking the basic pension to earnings and introducing an age addition of £5 for pensioners aged 75 to 79 years, and £10 for pensioners aged 80 years and above and (b) introducing an increase in the basic pension in 2001–02 of £5 for pensioners aged 75 years, £10 for pensioners aged 75 to 79 years and £15 for pensioners aged 80 years or above, followed by price indexation of all rates of pension thereafter, in each case showing the cost net of savings on means-tested benefits and increased income tax revenue. [127881]
§ Mr. RookerThe information is in the table.
481W
£ billion Option (a) Option (b) Gross Net of means-tested benefits and income tax Gross Net of means-tested benefits and income tax 2001–02 2.3 1.5 4.4 2.9 2002–03 2.9 1.9 4.5 3.0 2003–04 3.6 2.3 4.5 3.0 2004–05 4.5 — 4.5 — 2005–06 5.3 — 4.6 — Notes:
1. Option (a) assumes that the age addition is paid in full to all basic state pension recipients and is not uprated. Option (b) assumes age-related increases are paid pro-rata to those without full basic state pension.
2. Both options include the cost of benefits whose rates are linked to the rate of basic retirement pension.
3. Figures are rounded to the nearest £0.1 billion and are in 2000–01 price terms.
4. Gross costs estimated by the Government Actuary's Department. Costs net of income-related benefit savings are estimated using the Policy Simulation Model. Income tax revenues estimated by the Inland Revenue.
5. Estimates of income tax revenues not available beyond 2003–04.