To ask the Secretary of State for Social Security what would be the effect of (a) an increase in the pension age addition for the over-80s from 25 pence to £5, (b) the introduction of a new pension age addition of £3 for those aged 75 to 79 and (c) both (a) and (b) together on (i) gross pension expenditure, (ii) income tax revenues and (iii) expenditure on means-tested benefits; and what would be the overall effect on the Exchequer in each case. [18370]
The information is set out in the table.
| Age additions in 1997–98 | |||
| £ million | |||
| (a) Age addition for over 80s of £5 | (b) Age addition for 75–79s of £3 | Both (a) and (b) | |
| Gross costs | 600 | 310 | 910 |
| Income-related benefit offset | -250 | -90 | -330 |
| Income tax offset | -40 | -20 | -60 |
| Net Exchequer cost | 310 | 210 | 520 |
Source:
Gross costs provided by Government Actuary's Department. Net costs taking account of income related benefit offsets have been calculated by the Department of Social Security Analytical Services Division. The income tax offset has been provided by Inland Revenue.
Note:
Figures are rounded to the nearest £10 million.