§ Mr. WebbTo ask the Chancellor of the Exchequer on what basis the Inland Revenue indexed the amount of state pension included in pension tax codes between 1999–2000 and 2000–01. [26797]
§ Dawn Primarolo[holding answer 14 January 2002]: The Inland Revenue does not routinely index the amount of state pension when it issues tax codes to pensioners before the start of the tax year. It bases the tax code on information provided to it by the Department for Work and Pensions (the Department of Social Security before June 2001) for individuals receiving the state pension, which takes into account the increase in the state pension that comes into effect in the new tax year. If for any reason the information is not provided by DWP, the estimated amount of state pension already included in the tax code is increased by reference to the appropriate percentage increase in state pensions as announced in the pre-Budget report.