§ 23. Mrs. BrowningTo ask the Secretary of State for Social Security what assessment he has made of the results of his Department's policies to encourage personal pensions.
§ Mr. HagueThe Government are committed to encouraging choice and flexibility in pension provision, and has already introduced two new options for contracting out of the state earnings-related pension scheme—appropriate personal pensions and contracted-out money purchase occupational pension schemes. It is clear that individuals wish to take advantage of the choices available to make provision for their own retirement—more than 5 million people have used personal pensions to contract out of the state earnings-related scheme since the option was introduced in 1988. A 1 per cent. additional rebate for appropriate personal pension holders aged 30 and over was introduced from April 1993, fulfilling our manifesto commitment and ensuring that personal pension holders continue to find it worth while to maintain their pensions. The Government are considering measures to ensure that personal pensions remain attractive across the age range.