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Dept for Work and Pensions

Answer

Gregory Barker: To ask the Secretary of State for Work and Pensions pursuant to his Answer of 15 July 2003, Official Report, column 252W, on the state pension, if he will calculate the figures on the assumption that earnings growth exceeded price inflation by 1.5 per cent. in each of the six years in question. [132890] Mr. Browne: The information requested is in the tables. Table 1: The gross cost of uprating the basic State Pension by 1.5 per cent. above inflation from April 2004 £ billion _________________________________________________________________________________________________. 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 All pensioners 0.9 1.3 1.9 2.6 3.3 4.0 Pensioners aged 65 and 0.7 1.0 1.4 1.8 2.3 2.8 over Pensioners aged 70 and 0.6 0.9 1.2 1.7 2.1 2.5 above Pensioners aged 75 and 0.4 0.6 0.8 1.1 1.4 1.7 above Pensioners aged 80 and 0.2 0.4 0.5 0.7 0.8 1.0 over _________________________________________________________________________________________________. Table 2: The net cost of uprating the basic State Pension by 1.5 per cent. above inflation from April 2004 £ billion _________________________________________________________________________________________________. 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 All pensioners 0.7 1.0 1.4 1.8 2.3 2.8 Pensioners aged 65 and 0.5 0.7 1.0 1.3 1.6 2.0 over Pensioners aged 70 and 0.4 0.6 0.8 1.1 1.4 1.7 over Pensioners aged 75 and 0.3 0.4 0.5 0.7 0.9 1.1 over Pensioners aged 80 and 0.2 0.2 0.3 0.4 0.5 0.6 over _________________________________________________________________________________________________. Notes: 1. All costs are rounded to the nearest £100 million and are in 2003-04 price terms. 2. Gross costs are calculated by the Government Actuary's Department and are consistent with Budget 2003 assumptions. 3. The net costs are calculated using the DWP Policy Simulation Model for 2005-06. The net cost represents the cost after allowing for any offsetting savings in income-related benefits. 4. It is assumed that the start of the Savings Credit is increased to the value of the earnings linked basic State Pension.

Secondary information

Type

Written question

Reference

132890; 412 c296W;412 c304W

Session

2002-03

Subjects

Inflation State retirement pensions Average earnings

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk