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State Retirement Pensions

Volume 487: debated on Tuesday 10 February 2009

To ask the Chancellor of the Exchequer what recent estimate he has made of the cost to the public purse if the pension addition at age 80 were increased to (a) £2.50 and (b) £5.00 in each of the next five years. (252780)

I have been asked to reply.

The estimated cost of increasing the age addition, at age 80, to (a) £2.50 and (b) £5.00, in each of the next five years is shown in the following table, as well as additional expenditure relative to that of the current level.

Estimated cost of increasing the value of the age addition:

(a) Cost of age addition at £2.50

Additional expenditure

(b) Cost of age addition at £5.00

Additional expenditure

2008-09

345

310

685

650

2009-10

340

305

685

650

2010-11

340

305

680

645

2011-12

340

310

685

650

2012-13

350

315

700

665

Notes:

1. Costs are presented in £ million, for Great Britain, in 2008-09 terms, rounded to the nearest £5 million.

2. Additional expenditure is relative to the cost of the current level of age addition—£0.25.

Source:

DWP modelling.