asked Her Majesty's Government:
What would be the cost of abolishing the frozen pensions regulations for citizens who have retired abroad and who have reached the age of (a) 70, (b) 75, and (c) 80. [HL4676]
The latest estimates for abolishing the frozen pension regulations for citizens who have retired abroad are in the table. They relate to the estimated additional cost that would be incurred in 2007-08 were frozen pensions to be uprated to their unfrozen level but without paying arrears.
Age Amount Age 70 and above £400,000,000 Age 75 and above £340,000,000 Age 80 and above £240,000,000 Source: Internal estimates using September 2006 retirement pension administrative data: 5 per cent sample Note: Figures are rounded to the nearest £10 million
asked Her Majesty's Government:
By how much the increase in the National Insurance Fund exceeded the prospective cost of abolishing the frozen pensions regulations for citizens who have retired abroad, in each of the past 10 years for which estimates are available. [HL4677]
The information is not available in the format requested.
Our latest estimate is that the first year cost of unfreezing overseas pensions is around £440 million without paying arrears. The latest National Insurance Fund surplus was estimated at £34.26 billion for the tax year 2005-06 by the Government Actuary's Department. The latest National Insurance Fund surplus therefore exceeds the estimated cost of unfreezing overseas pension by £33.82 billion. However, the surplus in the fund is taken into account by the Government in determining their spending priorities. Any unplanned increase in pension payment will therefore need to be funded through taxation.
Sources: Internal estimates using the latest (September 2006) retirement pension administrative data, 5 per cent sample; and the National Insurance Fund accounts: 2005-06.
asked Her Majesty's Government:
What representations they have received from (a) Governments, and (b) individuals regarding the frozen pensions regulations for citizens who have retired abroad. [HL4678]
In the recent past, my department has had three meetings with Australian Ministers and officials at which the issue of not uprating the UK state pension to persons living in Australia was raised. From time to time, we receive correspondence from MPs and individuals about the issue.