§ Mr. Timms
The estimated additional cost of the extra rebates because of State Second Pension is as follows:
£ billion(1998–99 prices) 2010 2020 2030 2040 2050 Cost 0.9 1.4 2.1 2.9 4.1
The introduction of Stakeholder Pension schemes is expected to lead to higher levels of contracting out. It is estimated that for every million people who contract out, £0.7 billion would be lost in National Insurance contributions.
§ Mr. Austin
To ask the Secretary of State for Social Security if he will estimate the real cost to an employee on average earnings of the restoration of the earnings link to the basic state pension for(a) 2000, (b) 2010, (c) 2020,(d) 2030, (e) 2040 and (f) 2050, based on a growth in national income and average earnings of 1.5 per cent. per annum; and if he will estimate for the same years the real costs as they would be if the basic state pension was linked to prices and in the absence of the minimum income guarantee. 
§ Mr. Timms
[holding answer 4 February 1999]: The information is in the table.
Weekly contributions required by employees on average earnings to meet the cost of price and earnings upratings of national insurance fund benefits Price uprating of benefits and earnings limits Earnings uprating of benefits and earnings limits Year £ per week Percentage of all earnings £ per week Percentage of all earnings 2000 29 7.5 30 7.6 2010 33 7.3 37 8.1 2020 34 6.4 46 8.7 2030 35 5.7 61 9.9 2040 32 4.5 73 10.2 2050 29 3.5 84 10.1
1. The information is in constant 1998–99 price terms. However, costs can be met in a number of ways and the liability would not necessarily fall on employees.
2. Estimates assume 1.5 per cent. real earnings growth.
3. Means-tested benefit offsets have not been taken into account as they do not constitute part of the National Insurance Fund.
Estimates have been provided by the Government Actuary's Department
§ Mr. Timms
I refer my hon. Friend to the reply I gave him on 11 February 1999,Official Report, column 376, which gives the gross and net public expenditure costs for State Second pension compared to SERPS. The public expenditure costs arising from the introduction of Stakeholder Pension schemes would be dependent on the level of take-up. The estimated cost of guaranteeing eligible pensioners an income of at least £75 a week is £265 million in 1999–2000.