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Basic Pension Plus
Ms Harman: To ask the Secretary of State for Social Security what estimate he has made of the cumulative gross cost to public funds of implementing the basic pension plus proposals between 2001 and 2040. [20993]
Mr. Heald: It is not possible to give a precise cumulative cost since that will depend on when the scheme is introduced and what the initial age limit is. The overall cost to public funds of implementing basic pension plus, including the new rebates and reversing the timing of tax relief, will rise on average by about £160 million in each year following implementation reaching a maximum of about £7 billion by 2040 or later.
Ms Harman: To ask the Secretary of State for Social Security if he will publish the Government Actuary's advice on which he has based his estimate that a person on average earnings paying minium contributions to basic pension plus throughout their life would receive a pension of around £150 a week. [20994]
Mr. Heald: The Government Actuary's assumptions, on which the estimated pension of £175 per week for a person on average earning was based, are shown in the reply I gave to the hon. Member on 11 March, Official Report, columns 195-96.
Departmental Select Committee Report
Mr. Nigel Evans:
To ask the Secretary of State for Social Security if he will publish the Government's response to the Third report of the Social Security Committee, "Uprating of State Retirement Pensions Payable to People Resident Abroad" (HC 143 of Session 1996-97). [21424]
19 Mar 1997 : Column: 680
Mr. Lilley:
The Government welcome the Committee's report, which focused on the long-standing policy of uprating UK state retirement pensions when paid abroad in specific countries. The report is an important and useful study.
The report contained one recommendation:
"That there should be a free vote at prime time to allow Members to express their opinion on the principle of whether the Government should pay upratings to some or all of those pensioners living in countries where upratings are not paid at present".
Whipping arrangements are a matter for the business managers of all parties. The Government note that the House had the opportunity to debate the uprating of pensions paid abroad during the passage of the Pensions Bill in July 1995. Over 200 hon. Members voted on amendments aimed at providing uprating increases, which were heavily defeated.
The Committee's report rightly recognises that priorities for public expenditure will inevitably be taken into account in considering the issue. Almost £1 billion a year is paid to UK pensioners abroad. It would cost another £250 million a year to bring frozen pensions up to the rate that would be paid if the pensioner were in the UK.
Mr Alfred Morris:
To ask the Secretary of State for Social Security what were the savings to his Department in 1995-96 of ending the link between disability benefits and annual earnings at current prices. [16782]
Mr. Burt
[holding answer Tuesday 25 February 1997]: The information is in the table.
| £ million | |
|---|---|
| Incapacity benefit | 1,495 |
| Invalidity allowance/age addition | 80 |
| Attendance allowance/disability living allowance | 1,335 |
| NCIP/severe disablement allowance | 105 |
| Invalid care allowance | 105 |
Notes:
1. Estimates are rounded to nearest £5 million.
2. Estimates converted to 1996-97 prices using GDP deflator.
3. Estimates take account of offsetting costs in the income related benefits.
4. Disability living allowance includes the higher and middle rate care components. The mobility components and lowest rate of care component have been excluded from the calculation as they were never linked to earnings.
Source:
Analytical Services Division.
Disability Payments
Mr. Alfred Morris:
To ask the Secretary of State for Social Security if he will make a statement on the reasons for the corrections to his answers to the right hon. Member for Manchester, Wythenshawe of 11 November, Official Report, column 90 and of 4 December, Official
19 Mar 1997 : Column: 681
Report
Mr. Burt [holding answer 25 February 1997]: The estimates of the additional costs of uprating invalidity benefit, including invalidity allowance, in line with the higher of earnings or prices in my replies of 11 November 1996, Official Report, column 90 and 4 December 1996, columns 714-15, did not take account of the fact that between November 1980 and November 1985, the rate of basic invalidity pension was abated by 5 per cent. in lieu of taxation and that an equivalent abatement applied to the rates of invalidity allowance between November 1980 and November 1981.
The revised estimates in my answers of 10 February, Official Report, columns 78-79 were based on the assumption that such an abatement would not have applied if the link with earnings had been maintained.
The estimates also incorporated refined calculations, based on information that had not been originally available, of the offsetting savings arising from fewer claims to income-related benefits.
19 Mar 1997 : Column: 682
Mr. Andrew Mackinlay:
To ask the Secretary of State for Social Security, what factors underlie the expected expenditure on sickness and social security between 1996-97 and 2001-02 projected in the financial statement and Budget Report 1997-98; and if he will make a statement. [17651]
Mr. Waldegrave
[holding answer 25 February 1997]: I have been asked to reply.