Schedule 4 sets out the basis on which an inherited amount will be uprated. An inherited amount will be either the equivalent of the current system—an inheritable additional pension, in the circumstances I have described—or half the deceased’s protected payment. It is paid in addition to the pension the person is entitled to in their own right. The uprating will depend on how much single-tier pension someone already has in their own right: if they have £144 or more, the whole will be uprated by prices; if they have less, the balance to £144 will be earnings linked to whatever we do with single tier, and the balance will be subject to the CPI. I hope that is helpful and as expected.
I will not detain the Committee too long. I was delighted to see the Minister resort to his folder for one of the first times today. He went through that explanation a bit quickly for me. Did he refer to some of the differences we discussed earlier on indexing? I took him to say that part of this would be indexed by prices. There is another issue with earnings. He said something latterly about the balance that I did not pick up. Will he elaborate?
The basic principle is that the £144 is earnings-linked, at least, and the balance is CPIed. I was making the point that if someone has less than £144 in their own right and they inherit something from someone else, the bit that takes them up to the £144 is still earnings linked, because it is under £144; the balance is CPIed. People should bear it in mind that, currently, inherited additional pensions would be entirely CPIed, because that is what we do with additional pensions.