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Pensions

Volume 176: debated on Monday 9 July 1990

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To ask the Secretary of State for Social Security (1) what he estimates would be the cost to his Department of adding £3 per week to the pensions of pensioners over 75 years of age;(2) what he estimates would be the cost of adding £5 per week to the state pension for a single pensioner at current prices;(3) how much he estimates it would cost his Department to increase the pension for a married couple by £8 per week at current prices;(4) how much it would cost his Department to provide every pensioner aged 75 years and over with £10 per week extra at 1990–91 prices.

[holding answers 5 June and 12 June 1990]: The estimated gross and net costs with the accompanying estimated savings in income-related benefits for each of the additions is shown in the table.

AdditionEstimated gross cost £ billionEstimated net cost £ billionEstimated savings in income related benefits £ billion
£3 per week to all pensioners over 750·610·420·20
£5 per week to single pensioners1·150·730·43
£8 per week to married couple pensioners1·371·100·26
£10 per week to any pensioner aged 75 or over2·031·500·53

Note: Costs shown use 1990–91 benefit rates.