§ Lynne JonesTo ask the Secretary of State for Work and Pensions (1) if he will provide figures on the same basis as tables 3 and 4 of "The Pension Credit: long-term projections", showing(a)the cost of the basic state pension if increased in line with earnings, (b) the additional cost of increasing the basic pension in line with earnings and (c) the additional yield of national insurance contributions if they remain the same proportion of contributors' earnings as in 2002–03; [30394]
(2) if he will provide figures on the same basis as tables 1 and 2 of "The Pension Credit long-term projections", showing the effect on the cost of the pension credit if the proportion of relevant income disregarded were reduced from 60 per cent, to (a) 50 and (b) 40 per cent., assuming 1117W that the guarantee credit is uprated in line with average earnings and the savings credit threshold is uprated in line with prices. [30395]
§ Mr. McCartney"The Pension Credit: Long-term projections" sets out the Department for Work and Pensions' illustrative projections of the future cost and coverage of the Pension Credit under various assumptions. These projections should be treated as broad-brush illustrations of the effect of various assumptions rather than firm forecasts of potential costs. The results can be thought of as providing broad lower and upper ranges of potential costs.
The projections set out in the paper are sufficient to inform the Department's policy making and to provide assurance that the Government's spending on pensions remains sustainable in the long term. The further analysis requested could be obtained only at disproportionate cost.