asked Her Majesty's Government:
What would be the cost, both gross and net, in 2015 and 2020 of retaining the adult dependency allowance for partners aged 60 to 65.[HL6731]
The information requested is set out in the table below. The Government's proposal in the White Paper Security in retirement: towards a new pensions system, published in May 2006, to abolish the adult dependency increase would not affect those entitled to it prior to the change; they would remain entitled to it until 2020. We are reinvesting the savings to provide better state pensions, particularly for women.
Year 2015 (£ billion) 2020 (£ billion) Gross costs 0.6 1.5 Net costs 0.5 1.2 Expenditure is in 2006-07 price terms and all figures are for UK and overseas cases. Estimates of expenditure changes are consistent with the policy detail set out in the White Paper. The net cost includes income-related benefits costs but not the reduction in income tax revenue.