§ Lynne JonesTo ask the Secretary of State for Work and Pensions what the additional cost would be of the basic state pension in(a) 2010, (b) 2020, (c) 2030, (d) 2040 and (e) 2050 if, in one year out of every two, the inflation rate were (i) 2 per cent. and (ii) 1.5 per cent. [30396]
§ Mr. McCartneyThe information is in the table.
Additional cost to basic state pension if in one year out of every two the inflation rate were two per cent. and 1.5 per cent. £billion 2 per cent. inflation 1.5 per cent. inflation 2010 0.4 0.8 2020 1.5 3.05 2030 3.2 6.55 2040 5 10.5 2050 6.55 13.85 Notes:
1. Figures are gross cost for GB rounded to the nearest £50 million.
2. Figures in 2001–02 prices.
3. Figures based on latest Government Actuary's Department statistics which takes account of the change in the state pension age for women.
4. Additional costs are based on the assumption that basic state pension would increase by 2.5 per cent. in the long run (as stated in the PBR).