Part of the debate – in the House of Lords at 2:44 pm on 12 March 2001.
My Lords, as a result of our proposals, additional expenditure on pensions is approximately £6.5 billion. However, one point that may interest my noble friend Lord Barnett is that when we came into government in 1997 the amount of GDP that went on pensioners was 5.32 per cent. Had we had the earnings link that my noble friend would have pressed for, it would by now have fallen to 5.23 per cent. As a result of the increases in our proposals it will rise to 5.47 per cent. So not only have pensioners kept pace with the growing prosperity of the nation, they have done even better than that and surpassed it.