§ 35. Sir Sydney Chapman (Chipping Barnet)If he will make a statement about the effect on clergy pensions of longevity, changes in taxation on pension funds and the recent stock market movements. [68949]
§ Mr. Stuart Bell (Second Church Estates Commissioner, representing the Church Commissioners)The latest actuarial review of the Commissioners' pension liabilities added a total £11 million a year to Church costs due to increased longevity. The withdrawal of the dividend tax credit from pension funds and charities has cost the Church some £12 million per year. Current stock market conditions disadvantage the Commissioners but help the new funds to be better and more cheaply invested. The net effect is broadly neutral.
§ Sir Sydney ChapmanI am grateful to the hon. Gentleman for that reply, which I shall study with care. Is not the real problem the fact that the pension is so modest? I recognise the important part that the Church Commissioners play in meeting a sizeable proportion of pensions. However, will the hon. Gentleman consider the problem from the point of view of a modest pension and see what the Commissioners can do to safeguard pensions during this difficult time?
§ Mr. BellI am always grateful to the hon. Gentleman for drawing attention to clergy pensions. As he knows, the Commissioners are not entirely responsible for all pensions, but only for pensions entered into in the past. The question of having them under review is one that the Church always takes to heart, and keeps constantly under review.
§ Mr. SpeakerI call Mr. Simon Thomas—the hon. Gentleman is not here. I call Mr. Michael Fabricant.