Sir Iain Duncan Smith

Sir Iain Duncan Smith

Conservative — Chingford and Woodford Green

Speaking in the House of Commons on 28 January 2026

Debate

British Indian Ocean Territory

Contribution

I ran the Department for Work and Pensions, which spent the whole time looking at net present value. The key problem is that we do not use net present value when dealing with a foreign country for a very simple reason: we have no idea what social issues will erupt or change. While we have control in the UK, we do not have control of a foreign country. That immediately distorts the payment amount, plus net present value strips out relevant inflation, which makes it much cheaper, officially. The real cost that we have to bear is the £34.7 billion that the actuaries have stated, not this nonsense of net present value.

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