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Mr. Renton
asked the Minister for the Civil Service what was the cost to the taxpayer of inflation-proofing Civil Service pensions in each of the last five financial years; and what is the expected cost in the current financial year and in the year to April 1981.
Mr. Channon
It is estimated that the additional cost over the first full year—it declines progressively thereafter—of implementing increases in Civil Service pensions under the Pensions (Increase) Act 1971—as amended—was as follows:
Year | Main percentage increase | First year's cost £ million |
1972 | 9·9 | 9 |
1973 | 9·3 | 10 |
1974 | 16·5 | 21 |
1975 | 261 | 41 |
1976 | 13·8 | 31 |
1977 | 17·7 | 48 |
1978 | 7·4 | 25 |
1979 | 16·0 | 61 |