Pensions
House of Lords
Written answers and statements, 5 November 2009
Lord Laird (Crossbench)
To ask Her Majesty's Government by what percentage the state old age pension is lower than it would be if it had been linked to the average increase in earnings over the past 10 years.
Lord McKenzie of Luton (Parliamentary Under-Secretary (also in the Department for Communities and Local Government), Department for Communities and Local Government; Labour)
The basic state pension is 4 per cent lower than it would have been had it been uprated by the average earnings index over the past 10 years.
As set out in the Pensions Act 2007, our objective, subject to affordability and the fiscal position, is to restore the link with earnings in 2012, or by the end of the next Parliament at the latest.
Notes:
The average earnings index figure for July (LNNC series) has been used for calculations.