§ Mr. O'HaraTo ask the Secretary of State for Social Security if he will estimate the(a) gross and (b) net cost, after taking account of increased taxation receipts and means-tested benefits savings, of raising the basic state pension to £90 per week for a single person and £135 for a pensioner couple; and what increase in National Insurance contribution rates would be required from (i) employers and (ii) employees to meet this cost. [115743]
§ Mr. RookerThe information is in the table:
Cost of increasing the basic state pension to £90 and £135 per week, 2000–01 £ million Gross cost 11,790 Cost net of means-tested benefits 9,210 Costs net of means-tested benefits and income tax 8,160 Notes:
1. Costs are rounded to the nearest £10 million and are in 2000–01 benefit rates.
2. Costs include benefits whose rates are statutorily linked to the basic state pension rate, such as Widow's Benefits and Incapacity Benefit.
3. Gross costs and changes in National Insurance contribution rates have been supplied by the Government Actuary' Department.
4. Offsetting means-tested benefit savings have been calculated using the Department's 2000–01 Policy Simulation Model.
5. Income tax savings have been estimated by the Inland Revenue.
In order to meet the gross cost from the National Insurance Fund, either employers' National Insurance contribution rates would have to rise by 3.9 percentage points, or employees' National Insurance rates would have to rise by 4.5 percentage points.