§ Mrs Beckett
To ask the Secretary of State for Social Security how many people have taken out personal pension schemes; what is the estimated cost to the national insurance fund for 1989–90 and 1990–91; and how much of this cost is accounted for by the 2 per cent. inducement under section 1 of the Social Security Act 1986.
§ Mrs Gillian Shephard
A total of 3.5 million people have so far applied for an appropriate personal pension. The most recent estimate of the revenue forgone by the national insurance fund in respect of minimum contribution to personal pension schemes is £2,580 million in 1989–90 and £2,020 million in 1990–91. Of these amounts £720 million and £520 million respectively relate to the cost of the incentive.
Source: Government Actuary's Department.