HC Deb 22 March 2004 vol 419 cc570-2W
Mr. Webb

To ask the Secretary of State for Work and Pensions if he will estimate the annual cost to public funds from April, net of savings in mean-tested benefits and additional income tax revenue,(a) of paying state pensions in full at the rate of a Category A pension to every UK pensioner aged between 65 and 74, regardless of their contribution record and (b) of paying a full basic state pension to each individual at the rate of the guarantee credit, regardless of contribution record, from the age of 75; and if he will estimate for (b) the cost in each of the following four years on the assumption that the pension was then indexed to earnings. [162682]

Malcolm Wicks

The annual additional cost to the Exchequer, net of additional income tax and savings in income related benefits of paying the full basic pension at the rate of a Category A pension to every GB pensioner aged between 65 and 74 is £2.1 billion.

The additional cost to the Exchequer of paying the basic state pension at the rate of the guarantee credit, regardless of contribution history, to all aged 75 and over is in the following table:

£billion
Net Cost
2004 4.4
2005 4.6
2006 4.9
2007 5.3
2008 5.6

Notes:

  1. 1. Figures are for Great Britain and in 2003–04 price terms rounded to the nearest £100 million. It is assumed the change comes into effect from April 2004 and payment is uprated in line with earnings thereafter.
  2. 2. Gross costs are estimated by the Government Actuary's Department and are consistent with Budget 2004 assumptions and use 2002 based population projections.
  3. 3. The costs take into account income related benefit offsets, which are calculated using the DWP policy simulation model and April 2004 benefit rates.
  4. 4. Additional income tax revenue is estimated by the Inland Revenue using 2004 tax rates.

Dr. Iddon

To ask the Secretary of State for Work and Pensions what percentage of average male earnings the state retirement pension for a single person represented in each year from 1994 to 2004. [162177]

Malcolm Wicks

The information is not available in the format requested. However, such information as is available is set out in the table.

Percentage
1995 19.8
1996 19.7
1997 19.9
1998 19.8
1999 19.3
2000 19.0
2001 18.9
2002 18.8
2003 18.9
  1. 1. All figures are provided from a 5 per cent. sample of DWP administrative data taken at March in each year, except March 1995 which is a 10 per cent. sample. We are only able to provide figures from March 1995 as the administrative data is not available before this point.
    2. 572W
  2. 2. Neither administrative data nor earnings data for 2004 is available.
  3. 3. State pension is calculated as the maximum rate of basic state pension plus the average mount of additional pension in payment based on March administrative data for recently retired men aged 65.
  4. 4. Average earnings is the mean weekly earnings at April in each year, found in the Annuli Abstract of Statistics published by the Department for Work and Pensions.
  5. 5. The figures have been rounded to the nearest 0.1 of a percentage point.