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19 Dec 2006 : Column 2001W—continued

The following table contains the projected additional cost of basic state pensions reform. Column (a) shows the additional cost of the changes to adult dependency increases. Column (b) shows the additional cost of improving coverage of the basic state pension. Column (c) shows the gross and net cost of increasing the basic
19 Dec 2006 : Column 2002W
state pension in line with earnings, on current qualifying criteria. Column (d) is the total additional net cost of reforms to the basic state pension, excluding state pension age increases.

Table 1: Gross and net costs of basic state pension reforms
	(a) Changes to Adult Dependency Increases		(b) Changes to criteria qualifying		(c) BSP indexed to earnings		(d) Combined effect of policies
	Gross	Net	Gross	Net	Gross	Net
2010	-0.1	0.0	0.1	0.1	0.0	0.0	0.0
2011	-0.2	-0.1	0.2	0.1	0.0	0.0	0.0
2012	-0.3	-0.2	0.3	0.2	0.8	0.4	0.4
2013	-0.4	-0.3	0.4	0.3	1.7	1.1	1.0
2014	-0.6	-0.5	0.5	0.4	2.8	1.7	1.6
2015	-0.8	-0.6	0.6	0.4	3.8	2.4	2.3
2016	-0.9	-0.7	0.7	0.5	4.9	3.1	2.9
2017	-1.1	-0.9	0.8	0.6	6.1	3.8	3.5
2018	-1.4	-1.1	0.8	0.7	7.3	4.4	4.0
2019	-1.6	-1.2	0.9	0.7	8.5	5.1	4.6
2020	-1.7	-1.4	1.0	0.8	9.8	5.9	5.4
2030	-1.8	-1.4	2.5	1.9	29.6	18.4	19.0
2040	-1.4	-1.1	3.5	2.7	57.8	35.5	37.1
2050	-1.6	-1.2	3.7	2.9	91.5	55.9	57.6
Notes: 1. Estimates of additional expenditure are consistent with the policy detail set out in the regulatory impact assessment accompanying the Pensions Bill. Net costs include savings seen from reduced expenditure on other income related benefits (pension credit, housing benefit and council tax benefit). They do not include any change in income tax revenue or National Insurance. 2. Net costs assume the pension credit standard minimum guarantee is uprated by earnings from 2008. 3. Columns (a) and (b) assume the basic state pension is linked to prices. Column (c) assumes the changes to adult dependency increases and the reforms to qualifying criteria have already taken place. Applying the changes in a different order would alter the gross and net cost of each individual policy, but not the total additional cost of reform. 4. Costs or savings presented in the table are based on long-term projections of United Kingdom benefit spend, consistent with the pre-Budget report 2006. 5. Figures exclude the effect of raising state pension age. 6. Figures exclude the effect of personal accounts. 7. All figures are £ billion, in 2006-07 price terms.

Mr. Laws: To ask the Secretary of State for Work and Pensions what the total cost is to his Department of work related to pension reform that has been undertaken by consultants since the publication of the Pensions Commission's second report on 30 November 2005. [102154]

James Purnell: The total cost of work related to pension reform, both research and consultancy, that has been undertaken by consultants for the Department for Work and Pensions between 30 November 2005 and the end of August 2006 is £1,687,561.

Mr. Laws: To ask the Secretary of State for Work and Pensions if he will estimate the combined value of basic state pension and state second pension payments at the point of retirement for an average earner with a full contribution record reaching state pension age in each year from 2010 (a) under current policies and (b) if the reforms in the Pension White Paper Security in Retirement: Towards a New Pension System are implemented. [102222]

19 Dec 2006 : Column 2003W

James Purnell: The following table shows the estimated state pension entitlements for a male median earner with a full contribution record reaching state pension age in 2050 (before reform) and 2053 (after reform). It compares his outcomes under the current system with those under the full reform package, including the new simplified S2P proposals. The second table shows a male median earner reaching state pension age in 2050-53 who has contributed, or who has had credits, for a more typical working life of 40 or 43 years.

Full working life
Reaching SPA in year	Median earner current system	Reformed system
2010	150	150
2011	149	149
2012	148	149
2013	147	149
2014	145	149
2015	144	149
2016	143	149
2017	142	149
2018	141	149
2019	140	149
2020	139	149
2021	138	150
2022	137	150
2023	136	150
2025-26	134	151
2026-27	133	151
2027-28	132	153
2028-29	131	153
2029-30	130	152
2030-31	129	152
2031-32	128	153
2032-33	127	152
2034-36	125	152
2035-37	124	151
2036-38	123	151
2037-39	122	151
2038-40	121	151
2039-41	121	151
2040-42	120	151
2041-43	120	152
2043-46	119	152
2044-47	118	152
2045-48	118	152
2046-49	117	152
2047-50	117	152
2048-51	116	152
2049-52	116	152
2050-53	115	152

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