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Second State Pension

Volume 506: debated on Monday 22 February 2010

To ask the Secretary of State for Work and Pensions how much was spent on the second state pension in 2009-10; how much such expenditure was on entitlements accrued during (a) 2008-09, (b) 2007-08 and (c) 2006-07; and if she will make a statement. (301008)

[holding answer 23 November 2009]: Public expenditure on state second pension/state earnings-related pension scheme in 2009-10 is expected to be £13,200 million.

The following table shows the planned expenditure on state second pension entitlements accrued during (a) 2008-09, (b) 2007-08 and (c) 2006-07.

Financial year, cash terms

Year second state pension entitlements accrued

Planned expenditure (£ million) in 2009-10

2008-09

20

2007-08

60

2006-07

100

Notes:

1. Figures have been rounded to the nearest £10 million.

2. Forecasts of second state pension/state earnings related pension scheme

are based on the pre-Budget report 2009 forecasts.

Published expenditure tables can found at the following link:

http://research.dwp.gov.uk/asd/asd4/medium_term.asp

3. Updated forecasts are scheduled to be published at Budget 2010.

4. Accrued entitlement after 2002 only relates to second state pension and does not include the state earnings related pension scheme.

5. The table shows that there are more cohorts in the later years that have accrued entitlement. Planned expenditure in 2009-10 of entitlements accrued in 2008-09 relates to men currently aged 65 and women aged 60. Planned expenditure in 2009-10 of entitlement accrued in 2007-08 relates to men currently aged 65, 66 and women aged 60, 61. Planned expenditure in 2009-10 of entitlement accrued in 2006-07 relates to men currently aged 65, 66, 67 and women aged 60, 61, 62.

Source:

Strategy Directorate modelling.