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Pensions

Volume 330: debated on Tuesday 27 April 1999

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To ask the Secretary of State for Social Security by how much it would be possible to increase the basic state pension, taking into account savings on means-tested benefits and increases in income tax revenues, if the £100 winter fuel payment were abolished and all the proceeds spent on the basic state pension. [81975]

The amount allocated for Winter Fuel Payments for 1999–2000 is £0.8 billion. We estimate that this would provide an increase in the basic State pension for one year only in the order of £2.55 a week for Category A cases and £1.50 a week for category BL cases.

Notes:

  • 1. The gross costs underlying this estimate have been provided by the Government Actuary's Department.
  • 2. Income tax offsets were provided by the Inland Revenue.
  • 3. Means-tested benefit offsets were estimated using the 1996–97 Family Resources Survey and the 1997 Quarterly Statistical Enquiry and are in 1999–2000 prices, earnings and benefit levels.
  • 4. The estimate provides a broad order of magnitude and is rounded to the nearest£0.05.