HC Deb 07 July 2003 vol 408 cc602-3W
Mr. Wyatt

To ask the Secretary of State for Work and Pensions what percentage of men and women do not receive the full basic state pension, broken down by age. [123995]

Malcolm Wicks

The information is in the table.

4. Those on less than 100 per cent. basic state pension include people who are in receipt of 60 per cent. of the basic state pension based on their spouse's contributions. However, widows and widowers receiving a full basic state pension on their spouse's contributions are counted as receiving a full basic state pension.

Source:

1.5 per cent. sample of Pensions Strategy Computer System—November 2002

Mr. Frank Field

To ask the Secretary of State for Work and Pensions if he will estimate the cost of raising the basic state pension to(a) 20 per cent. and (b) 25 per cent. of average earning on a (i) gross and (ii) net basis after tax and means-tested benefits. [124041]

Malcolm Wicks

The information requested is set out in the table:

£ billion
1Estimated cost 2Estimated cost
Gross Cost 2.3 12.2
Net Cost 1 5.7
1 Of increasing the maximum rate payable of the basic State Pension to 20 per cent. of average earning in 2004–05.
2 Of increasing the maximum rate payable of the basic State Pension to 25 per cent. of average earnings in 2004–05.

Notes:

1. The estimates are for Great Britain only and are in cash terms rounded to the nearest £100 million.

2. The maximum rate payable of the basic State Pension is assumed to increase to 20 per cent. and 25 per cent., of average earning, this corresponds to £84.55 per week and £105.70 per week in 2004–05. All other payments are assumed to increase proportionately.

3. Estimates of the value of the basic State Pension are based on the April 2002 New Earnings Survey projected forward to April 2004.

4. The estimates of the gross cost are based on September 2002 State Pension administrative data, projected forward to 2004–05.

5. Estimates of saving in income-related benefits are based on the DWP Policy Simulation model for 2004–05. The calculations assume that the start of the Savings Credit is increased in line with the new value of the basic State Pension.

6. Estimates of tax yield are provided by the Inland Revenue and are based upon the Survey of Personal Incomes 2000–01 projected forward to 2004–05.

7. To estimate the net cost, it is assumed that additional tax yield and savings in income related benefits and are channelled back into the basic State Pension.