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Dept of Social Security

Answer

Mr. Mitchell: To ask the Secretary of State for Social Security if he will estimate the cost to the Exchequer of increasing the basic state pension to £92 for a single person and £138 for a couple, taking into account (a) savings in regard to (i) the minimum income guarantee and (ii) other benefits payable to pensioners and (b) the consequent increases in receipts of tax revenue. [147606] Mr. Rooker: [holding answer 6 February 2001]: The information is in the table. Cost of increasing the basic state pension to £92 for a single person and £138 for a couple Year 2001-02 _________________________________________________________________________________________________. £ billion Gross total 8.4 Minimum Income Guarantee savings 1.8 Other income related benefit savings 1 Total income related benefit savings 0.8 Tax yield 0.8 Total net cost 5.8 _________________________________________________________________________________________________. Notes: 1. All costs are given in £ billion to the nearest £100 million. 2. Gross costs are estimated by the Government Actuary's Department. 3. Income related benefits savings are estimated using the Policy Simulation Model. 4. The tax effects are estimated by the Inland Revenue. 5. Costs are given excluding widows and bereavement benefits whose rates are linked by law to the rate of basic Retirement Pension. Including them adds £200 million to the net costs.

Secondary information

Type

Written question

Reference

147606; 362 c700W

Session

2000-01

Subjects

Costs Income support Income Pensioners Personal savings Social security benefits State retirement pensions Tax yields Uprating

Contains statistics

Yes

Link

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