Member

There were questions about costing, because the PPF and FAS are in different positions. Broadly speaking, indexing pre-1997 for future FAS payments in line with the CPI capped at 2.5% would cost approximately £400 million to £700 million over the lifetime of the scheme. For the PPF, that would be more like £1.7 billion to £1.8 billion. Any FAS ad hoc increase would have to be paid from the Exchequer. Any ad hoc increase for the PPF would increase its liabilities. Again, on reflecting on this, the Government have to be aware of the balance.