Question
To ask the Chancellor of the Exchequer pursuant to the contribution by the Exchequer Secretary to the Treasury of 2 July 2012, Official Report, column 696, stating that next year a full basic state pension is forecast to be £130 a year higher than under the previous Government's plans, how that forecast was calculated.
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Answer
The forecast that a full basic state pension will be £130 a year higher in 2013-14 than under the previous Government's plans was based on the annual value of a full basic state pension in 2013-14 under the Government's policy of uprating by the triple lock (i.e. the highest of inflation, earnings or 2.5%) each year from 2012-13, compared with the previous Government's policy of uprating the basic state pension by earnings each year from 2012-13. The forecast was based on the OBR's Budget 12 forecasts for CPI and earnings.
The Government will set out its policy for uprating the basic state pension and other benefits in 2013-14 at the autumn statement.