§ Mr. McCrindle
To 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
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.