asked the Secretary of State for Social Services what information is available to him as to the number of persons in contracted-out pension schemes who are entitled to inflation-proofing of their pensions after retirement; and what information he has as to the estimated cost of this provision in the years (a) 1985, (b) 1990, (c) 1995, (d) 2000 and (e) 2010, both in money terms and as a proportion of the total cost of the state earnings-related pension scheme.

[pursuant to his reply, 7 May 1985, c. 339–40): In the year ending 5 April 1983 approximately 9·8 million people paid some contributions at contracted-out rates.The estimated cost of inflation-proofing the guaranteed minimum pension GMP) portion of contracted-out occupational pensions is as follows:

Year	*£ million
1985–86	30
1990–91	130
1995–96	400
2000–01	800
2010–11	1,900
* Expressed in terms of 1984–85 earnings. In each year the estimated costs are 20–25 per cent. of the cost of the state earnings-related pension scheme.

The future cost of inflation proofing GMPs depends crucially on the assumptions about future levels of inflation. The above figures are based on the assumptions underlying the figures in the Green Paper "Reform of Social Security". The main assumptions are given in annex B of paper 2 in volume 3.