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Financial Assistance Scheme

Volume 458: debated on Thursday 29 March 2007

20. To ask the Chancellor of the Exchequer what the net present value is of the additional contribution to the Financial Assistance scheme announced in the Budget. (130459)

The net present value of the additional contribution to the FAS is £1 billion. This represents an extra £5.6 billion when expressed as long-term cash expenditure. The extension more than triples the previous level of support, raising the total long-term cash expenditure on FAS to £8 billion from a previous £2.3 billion, or to £1.8 billion from a previous £830 million in terms of net present value. This is an extremely generous package of support that will ensure that everyone who has lost out will receive the vast majority of the pension they had originally expected to receive, and will benefit an additional 85,000 people.