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Pensions

Volume 455: debated on Monday 8 January 2007

To ask the Chancellor of the Exchequer what his estimate is of the annual state second pension payments which will be made based upon the Pensions White Paper proposals in each year from 2006 to 2052. (103512)

I have been asked to reply.

The information requested on state second pension payments is not available. Estimates of the annual cost of the state second pension are shown in the following table. The costs are consistent with those shown in the Pensions Bill Regulatory Impact Assessment and include proposals for a simplified state second pension.

Cash (£ billion)

Real terms 2006-07 prices (£ billion)

Percentage of GDP

2006

9.3

9.3

0.7

2007

10.4

10.1

0.8

2008

11.5

10.9

0.8

2009

12.5

11.5

0.8

2010

13.5

12.1

0.8

2011

14.5

12.7

0.8

2012

15.6

13.3

0.9

2013

16.7

13.8

0.9

2014

17.8

14.4

0.9

2015

19.0

14.9

0.9

2016

20.2

15.4

0.9

2017

21.4

15.9

0.9

2018

22.7

16.4

0.9

2019

24.0

16.9

0.9

2020

25.6

17.5

1.0

2021

27.4

18.2

1.0

2022

29.5

19.0

1.0

2023

31.7

19.9

1.0

2024

33.5

20.5

1.0

2025

34.9

20.7

1.0

2026

36.9

21.3

1.0

2027

39.8

22.4

1.1

2028

42.8

23.4

1.1

2029

46.2

24.6

1.1

2030

49.8

25.8

1.2

2031

53.6

27.0

1.2

2032

57.7

28.2

1.2

2033

62.0

29.5

1.3

2034

65.4

30.3

1.3

2035

67.8

30.6

1.2

2036

71.7

31.4

1.3

2037

77.2

33.0

1.3

2038

83.3

34.6

1.3

2039

89.8

36.2

1.4

2040

96.6

37.9

1.4

2041

103.8

39.6

1.4

2042

111.2

41.3

1.5

2043

119.1

43.0

1.5

2044

125.3

44.1

1.5

2045

129.7

44.4

1.5

2046

136.9

45.6

1.5

2047

147.7

47.8

1.5

2048

159.6

50.3

1.6

2049

172.5

52.8

1.6

2050

186.1

55.4

1.7

Note: Figures are in £ billion in 2006-07 prices and are for all UK and overseas pensioners. They include SERPS/simplified S2P and graduated retirement benefit (GRB).