Pensions

HC Deb 05 March 1987 vol 111 cc674-5W

Mr. Janner

asked the Secretary of State for Social Services whether he will provide a breakdown of the £3 billion public expenditure estimate for the cost of the establishment of a common minimum pension age of 60 years for both men and women.

Mr. Major

The estimated net public expenditure cost of about £3 billion for introducing a common minimum pension age of 60 is broken down in the table into its main components. These are broad estimates only.

	£ million
Estimated costs1
Retirement pension	+ 4,200
Loss of national insurance contribution income and tax revenue	+ 600
Housing benefit	+ 50
Estimated savings1
Supplementary benefit	- 650
Other benefits2	- 1,000
Net estimated cost	+ 3,200
1 Estimates are based on 1985–86 benefit, tax and contribution levels.
2 Unemployment benefit, sickness benefit, invalidity benefit, job release allowance.

Mr. Janner

asked the Secretary of State for Social Services which pension schemes for which he is responsible (a) do and (b) do not pay a widower's Pension.

Mr.Major

My right hon Friend is directly responsible for the national insurance scheme and the National Health superannuation scheme. In the national insurance scheme, widowers' pensions are not paid, although in some circumstances a widower may use his late wife's national insurance record to enhance or establish his own entitlement to a retirement pension. In the NHS superannuation scheme, a widower's pension may be payable where a female member has nominated her husband for this cover because he is financially dependent on her and is prevented by ill-health from earning his own living.

The Social Security Act 1986 requires that from April 1988 widowers whose wives were members of contracted-out occupational pension schemes shall receive a guaranteed minimum pension on broadly the same conditions as national insurance widows' benefits are available. This provision will affect the NHS superannuation scheme, and in the light of this minimum requirement, consideration is being given to a wider extension of widowers' benefit in respect of service from April 1988.

Mr. Janner

asked the Secretary of State for Social Services how many pensioners' households are currently in receipt of supplementary allowances; and how many he estimates are entitled to supplementary allowance but do not claim.

Mr. Lyell

People over pension age are entitled to claim supplementary pension. In February 1986 there were 1.68 million pensioners claiming supplementary pension, of whom 1.54 million were householders. The latest available figure for take-up of supplementary pensions is for 1983, and I refer the hon. Member to my reply to my hon. Friend the Member for Ilford, South (Mr. Thorne), the hon. Member for Newham, North-East (Mr. Leighton) and the hon. Member for Sunderland, North (Mr. Clay) on 30 October 1986 at columns231–234.