Work and Pensions written question – answered at on 12 October 2011.
To ask the Secretary of State for Work and Pensions if he will estimate the cost to the Exchequer which would arise from capping the increase in the state pension age for an individual to a maximum of (a) 18 months, (b) 15 months and (c) 12 months.
The following estimates assume that the timetable proposed in the Pensions Bill 2011 is applied until the relevant cap comes into force. The cap is applied until it is either no longer relevant, as the Pensions Bill timetable implies an increase lower than the cap, or a state pension age of 66 is reached.
(a) The cost of capping the increase in state pension age to a maximum of 18 months compared to the change in spend from the current Pensions Bill proposal is estimated at £1.1 billion between 2019-20 and 2020-21.
(b) The cost of capping the increase in state pension age to a maximum of 15 months compared to the change in spend from the current Pensions Bill proposal is estimated at £2.4 billion between 2018-19 and 2020-21.
(c) The cost of capping the increase in state pension age to a maximum of 12 months compared to the change in spend from the current Pensions Bill proposal is estimated at £4.3 billion between 2018-19 and 2020-21.
Notes
1. The savings estimates presented are calculated in line with the methodology used to prepare the estimates of DWP AME savings published in the impact assessment presented with the Pensions Bill 2011. They take into account lower spending on pensioner benefits and higher spending on working age benefits and incorporate changes to long-term assumptions following the publication of the Office of Budget Responsibility's July 2011 Fiscal Sustainability report.
2. The estimates are based on the current welfare system. Reliance on income-related pension benefits and working age benefits is assumed to remain in line with current age-specific rates of reliance.
3. A baseline of the state pension age reaching 66 by April 2020 is assumed in line with the proposals set out in the Pensions Bill 2011.
Yes0 people think so
No0 people think not
Would you like to ask a question like this yourself? Use our Freedom of Information site.