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Pensions

Volume 973: debated on Thursday 15 November 1979

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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.

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:

YearMain percentage increaseFirst year's cost £ million
19729·99
19739·310
197416·521
197526141
197613·831
197717·748
19787·425
197916·061
These figures exclude the offsetting effect on public expenditure of the pension contributions made by civil servants both directly and by reductions in salary levels. The cost of increases after November 1979 will depend on the estimated increase in prices from one uprating date to the next.