§ Mr. WebbTo ask the Secretary of State for Work and Pensions pursuant to the answer of 4 February 2004, Official Report, column 957W, on pensions, if he will estimate the net Exchequer effects of the pension reforms set out in the answer, based on the additional assumption that all age-related income tax personal allowances are abolished as part of each reform package. [155568]
§ Malcolm WicksThe information requested is set out in the table.
384W
£ billion 2004–05 2005–06 2006–07 2007–08 2008–09 Over 65 8.0 8.2 8.7 9.4 10.1 Over 70 5.6 5.8 6.2 6.7 7.2 Over 75 3.6 3.8 4.1 4.4 4.7
Notes:1. Figures are in 2003–04 price terms rounded to the nearest £100 million. It is assumed the change comes into effect from April 2004 on the same basis as the previous answer.2. The costing assumes that aged and super aged personal allowances are reduced to the personal allowance level.3. Gross costs are estimated by the Government Actuary's Department and are consistent with Budget 2003 assumptions. Estimates are all based on the new (2002) population projection and allow for recent revisions.4. The costs take into account income related benefit offsets, which are calculated using the DWP policy simulation model and April 2004 benefit rates.5. Additional income tax revenue is estimated by the Inland Revenue using 2004 tax rates.