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Pensions: Uprating

Volume 710: debated on Monday 18 May 2009

Questions

Asked by

To ask Her Majesty's Government whether their 2009 Budget projections assume that up-rating the basic state pension by reference to earnings will commence in 2012–13 or 2013–14; and, if not, what the impact on public sector net borrowing and net debt would be if up-rating commenced in either of those years. [HL3196]

To ask Her Majesty's Government whether the economic forecasts in the 2009 Budget show that the introduction of earnings up-rating of the basic state pension is affordable in 2012–13; and, if not, what improvement in the forecast would be required to achieve affordability. [HL3197]

To ask Her Majesty's Government whether the fiscal position shown in the forecasts in the 2009 Budget show that the fiscal position will allow the introduction of earnings up-rating of the basic state pension in 2012–13; and, if not, what improvement in the fiscal position would be required. [HL3198]

The Government have committed to relink the uprating of the basic state pension to earnings. Their objective, subject to affordability and the fiscal position, is to do this in 2012, but in any event by the end of the next Parliament at the latest.

The 2009 Budget set out the Government's overall assumption for public sector current expenditure (PSCE) for the three-year period beyond 2010-11 in table C4. Departmental budgets, and announcements on their content, will not be set for this period until the time of the next spending review. The Government have committed to making a statement on the precise date that earnings uprating will be introduced at the beginning of the next Parliament, at which point an assessment of affordability will be made taking into account the fiscal position.