Information that is available is in the following tables. We are unable to provide costs prior to 2004-05.
£million 2004-05 2005-2006 Total Frozen state pension paid to pensioners living abroad 870.58 900.17 1770.75 Direct costs to administer frozen state pensions for pensioners who live abroad. 3.6 3.8 7.4 Total 874. 18 903.97 1778.15
£million 2006-07 Frozen state pension paid to pensioners living abroad 232.69 Direct costs to administer frozen state pensions for pensioners who live abroad. 1.0 Total 233.69
The information is not held centrally and could be obtained only at disproportionate cost.
The figures presented in the 11 July 2006, Official Report, column 1753W refer to people reaching state pension age. They consequently will not be affected by including the assumption of the full implementation of the Pensions Commission proposals—i.e. to include the payment of a full basic state pension to all people aged 75 and over.
Information that is available relating to the state pension caseload and number of individual beneficiaries of pension credit in Great Britain on 31 November 2005 is in the following table. Information relating to Northern Ireland is the responsibility of my hon. Friend the Secretary of State for Northern Ireland.
Government office region State pension caseload Pension credit—individual beneficiaries North East 481,080 193,790 North West 1,252,520 432,360 Yorkshire and the Humber 926,680 321,090 East Midlands 799,720 241,310 West Midlands 990,990 345,030 East of England 1,052,410 274,090 London 950,070 344,550 South East 1,520,840 336,510 South West 1,073,570 273,700 Wales 588,310 197,990 Scotland 942,970 337,800 Source: DWP Work and Pensions Longitudinal Study
The total estimated spending on state pensions and pension credit in 2005-06 is in the following table.
£ million, nominal terms, estimated outturn Basic state pension 43,029 Additional state pension 8,243 Non-contributory state pension 31 Total state pension expenditure 51,303 Pension credit - guarantee credit 5,402 Pension credit - savings credit 1,019 Total pension credit expenditure 6,420 Notes: 1. Caseload figures are rounded to the nearest 10 and some additional disclosure control has been applied. 2. Expenditure figures are rounded to the nearest million pounds. 3. Totals may not sum due to rounding. 4. The number of individual beneficiaries includes both claimants and their partners. Source: DWP Expenditure tables
The information is not available in the format requested. Tables 1 and 2 show the total expenditure on basic state pension and pension credit respectively for the UK.
Under our reforms, more people will be getting state pensions based on their national insurance records, and there will be a more generous basic state pension due to the restoration of the earnings link. This provides a solid foundation for private saving. Incentives are further enhanced by reducing the growth of the savings credit.
Increase in the basic state pension leads to higher incomes for pensioners and as a consequence reduces the spending on pension credit. The reduction in pension credit as a result of the overall reform package can be seen in table 2. Column 2 of the table shows the level of spending without the White Paper reforms while column 3 shows spending after reforms.
Table 1 shows total expenditure under current basic state pension policies, and under the proposed reforms.
£ billion, 2006-07 prices Without reform With reform 2024 62.5 77.5 2034 75.9 109.7 2044 81.0 137.7
Table 2 shows total expenditure under different pension credit policies, all of which assume the stated policy of uprating the standard guarantee with earnings until 2008: the current system projected forward with the standard guarantee uprated by prices after 2008; the same scenario but with the standard guarantee uprated with earnings after 2008; and the projected outcomes under the White Paper reforms.
£ billion, 2006-07 prices Without reform, standard guarantee price-linked from 2008 Without reform, standard guarantee earnings-linked from 2008 With reform 2024 1.9 13.0 5.9 2034 1.1 21.2 3.8 2044 0.9 36.1 4.6 Notes: 1. Costs or savings presented in the table are based on long-term projections of United Kingdom benefit expenditure consistent with the Budget report 2006, and estimated expenditure effects of the proposed reforms. 2. Table 2 estimates of expenditure are dependent on projections of numbers receiving pension credit in the future. These projections are subject to a range of uncertainties and a number of factors including policies on uprating different benefits and assumptions on rates of take-up. The assumptions applied here are consistent with those that underpin published long-run expenditure projections. 3. Table 1 includes, in the ‘With reform’ column, earnings uprating the basic state pension, improving coverage, and the effects of state pension age increases. 4. Table 2 includes, in the ‘With reform’ column, continued earnings uprating of the standard guarantee; the savings credit maximum is uprated by earnings from 2008 and then by prices from 2015; earnings uprating of the basic state pension from 2012; measures to improve coverage of the basic state pension and reforms to the state second pension described in the White Paper. 5. Figures exclude the effect of personal accounts. 6. Figures include the effects on expenditure on the basic state pension and on pension credit arising from increases in the state pension age as set out in the White Paper.