§ Mr. McCrindleTo ask the Chancellor of the Exchequer if he will estimate the value of company pension fund contribution holidays in the United Kingdom in each of the past two years; and if he will make a statement.
§ Mr. Norman Lamont[holding answer 3 May 1989]: Full information in the form requested is not available. Information from large self-administered pension schemes proposing contribution holidays to reduce surpluses following the legislation in the Finance Act 1986 is as follows:
Schemes proposing a contribution holiday Number Amount (£ million) Schemes reporting in 1987–88 67 58 Schemes reporting between April 1988 and January 1989 157 236 Note:
The figures represent the total amount of surplus to be eliminated by means of a contribution holiday by schemes which have reported in each period. The contribution holiday may be spread across several years. Schemes proposing a reduction in contributions rather than a contribution holiday are not included in the above.
Percentage increase in real take home pay 1978–79 to 1989–901 Multiples of average male earnings1 ½ ¾ 1 1½ Single person 31 34 36 40 Married man with wife not in paid employment and 2 children3 24 28 31 36 1 Financial year average of pre- and post-October regimes for employees' National Insurance Contributions, using illustrative growth rates between 1988–89 and 1989–90 of 7½ per cent, in average earnings and 6 per cent, in prices. 2 Full time males on adult rates (all occupations). 3 Children assumed to be under 11, and child benefit included in figures to allow comparison with 1978–79 when child tax allowances were still being phased out.