HC Deb 17 July 2003 vol 409 cc558-9W
Mr. Willetts

To ask the Secretary of State for Work and Pensions pursuant to his answers of 7 April 2003,Official Report, column 88W, and 2 July 2003, Official Report, column 346W, on pensioners, if he will break down the column headed income related benefit savings into (a) the guarantee element of the pension credit, (b) the savings element of the pension credit, (c) housing benefit and (d) council tax benefit. [125655]

Malcolm Wicks

The information requested is set out in the following table.

A breakdown of income-related benefit savings
£
Pension credit guarantee Pension credit savings credit Housing benefit Council tax benefit Total
2003–04 90m 60m 20m 10m 180m
2004–05 240m 150m 60m 40m 500m
2005–06 400m 200m 90m 60m 800m
2006–07 500m 300m 120m 80m 1bn
2007–08 700m 400m 160m 100m 1.3bn
2008–09 800m 500m 200m 120m 1.6bn
2009–10 1bn 600m 240m 150m 2bn
2010–11 1.2bn 700m 280m 170m 2.3bn
2011–12 1.3bn 800m 320m 200m 2.7bn
2012–13 1.5bn 900m 370m 230m 3bn

Notes:

1. The figures are in 2002–03 price terms. The totals are rounded to the nearest £100 million, except 2003–04 which is rounded to the nearest £10 million. The totals may not sum due to rounding. Housing benefit and council tax benefit figures are rounded to the nearest £10 million. Pension Credit figures are rounded to the nearest £100 million, except in 2003–04 and 2004–05 which are rounded to the nearest £10 million.

2. Income related benefit offsets are calculated using the DWP's Policy Simulation model for 2003–04. Calculations assume Pension Credit is in place for the full financial year 2003–04 and that the starting point of the savings credit increases to the new value of the basic State Pension.

3. The income related benefit offsets are assumed to remain a constant proportion of the additional expenditure on the basic State Pension in future years as a result of introducing an earnings link in April 2003. The split between the guarantee credit and the savings credit is assumed to remain constant in future years.

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