§ Mr. DenhamTo ask the Secretary of State for Social Security what estimate he has made of the number of holders of appropriate personal pensions who are contributing only their national insurance rebate; and if he will provide this information by relation to the income of the holder. [2701]
§ Mr. HealdThe information is not available in the format requested.
Out of a total of 5.6 million appropriate personal pensions in 1993–94, we estimate that some 1.25 million received DSS contributions and associated tax relief only.
§ Mr. DenhamTo ask the Secretary of State for Social Security what estimate he has made of the number of holders of appropriate personal pensions who have rejoined the state earnings-related pension scheme in each of the past five years; and if he will provide this information by relation to the income of the holder. [2702]
§ Mr. HealdThe information up to the end of 1991–92, the latest year for which figures are available, is set out in the table.
91W
(£pa) APPs terminated in Reckonable earnings in the year of termination 1987– 1988–89 1989–90 1990–91 1991–92 Total All cases 14.1 16.2 9.6 13.9 21.2 75 Zero 0.3 0.1 0.1 0.5 0.9 1.9 1 to 4,999 3.7 3.9 1.5 1.1 2.2 12.4 5,000 to 9,999 6.4 6.2 4.4 3.6 6.4 27 10,000 to 14,999 3 4.7 1.8 5.2 5.6 20.3 15,000 and over 0.7 1.3 1.8 3.5 6.1 13.4 Source:
1 Per cent sample for the National Insurance Recording System.
Note:
- 1. As the numbers of cases are low the figures are subject to large sampling errors.
- 2. The analysis uses reckonable earnings as data on income are not available.
§ Mr. DenhamTo ask the Secretary of State for Social Security how many individuals currently(a) contribute towards a state earnings-related pension, (b) do not pay SERPS because they are in an occupational scheme and (c) do not pay SERPS because they are in a personal pension scheme. [2703]
§ Mr. HealdThe information for 1992–93, the latest year for which all the requested data are available, is in the table.
Millions Accruing SERPS entitlement only 8.3 In a contracted-out occupational scheme only 7.7 Accruing SERPS entitlement only for part of the year, and in a contracted out scheme during another part 0.8 In an Appropriate Personal Pension Scheme 5.7 Source:
1 per cent. sample from the National Insurance Recording System.
§ Mr. DenhamTo ask the Secretary of State for Social Security how many members of personal pension schemes who have opted out of the state earnings-related pension scheme he estimates will opt back into SERPS over the next five years; and how many have opted back into SERPS. [2704]
§ Mr. HealdIt is not possible to give a firm estimate of the number of people likely to opt out of an appropriate personal pension into the state earnings-related pension scheme, since the decision depends on an individual's particular circumstances. However, the introduction of age-related rebates from April 1997 should enable the majority of appropriate personal pension holders to maintain their arrangements.
We estimate that some 75,000 United Kingdom appropriate personal pension holders joined SERPS over the five-year period from 1987–88 to 1991–92, the latest year for which figures are available. This may include people who have left their appropriate personal pension and joined SERPS more than once.
§ Mr. DenhamTo ask the Secretary of State for Social Security what is his estimate of the number of those taking out personal pensions and who have ceased to pay national insurance rebates to this policy after(a) one year, (b) two years, (c) three years, (d) four years and (e) five years. [2705]
92W
§ Mr. HealdThe information is not available in the format requested and can be obtained only at disproportionate cost. Such information as is available is set out on pages 40 and 41 of "Personal Pension Statistics 1993–94", a copy of which is in the Library.
§ Mr. DenhamTo ask the Secretary of State for Social Security what would be the cost to the national insurance fund of all current holders of an appropriate personal pension with an annual income of(a) £2,000 or below, (b) up to £3,000, (c) up to £4,000, (d) up to £5,000, (e) up to £6,000, (f) up to £7,000, (g) up to £8,000, (h) up to £9,000 and (i) up to £10,000 opting back into SERPS. [2706]
§ Mr. HealdInformation is not available in the format requested. Any estimates of the total cost to the national insurance fund of current holders of appropriate personal pensions opting back into the state earnings-related pension scheme would depend on a number of unknown factors. These include how long the people concerned would remain contracted in to SERPS, how long they would otherwise have contributed to APP schemes and what their future earnings would be. The table gives illustrative estimates of the cost arising, in selected future years, from contributions paid solely in the single year in which the individuals concerned are assumed to contract into SERPS.
Extra SERPS expenditure in selected years if APP holder in low earnings bands opt back into SERPS for one year £ million 1995–96 prices APP holders with earning under (£ per annun) 2010–11 2020‒21 2030–31 2040–41 2050–51 2,000 — — — — — 3,000 — — — — — 4,000 0 0 0 0 0 5,000 0 1 2 2 1 6,000 0 1 4 4 3 7,000 1 3 10 10 5 8,000 1 5 15 15 10 9,000 2 5 20 25 15 10,000 2 10 30 35 20 93W
- 1. Little extra cost until 2010 as most APP holders are under age 45.
- 2. Estimates of numbers affected based on data for 1993–94, the most recently available, used to estimate proportions of APP holders in respect of people in the earnings bands quoted.
- 3. Earnings under £3,000 would not accrue SERPS so no financial effect in respect of that year.
- 4. Earnings have been used, as a breakdown by income is not available.
- 5. The year in which opting back into SERPS is assumed to take place is 1995–96.
§ Mr. DenhamTo ask the Secretary of State for Social Security what is the total cost to date to the national insurance fund of(a) national insurance rebates, (b) tax relief and (c) other incentives paid in respect of personal pensions contracted out of the state earnings-related pension scheme. [2707]
§ Mr. HealdThe information up to and including 1993–94, the latest year for which audited accounts are available, is set out in the table:
GB receipts £ millions Rebates to personal pensions (a) 9,149 Tax relief to personal pensions (b) 1,067 Incentives to personal pensions (c) 3,126 Total (a)+(c)1 12,275 Notes:
1 The cost of tax relief is not a cost to the National Insurance fund as it is continually reimbursed by the Inland Revenue.
Source: National Insurance Fund Accounts and data from the Contributions Agency
GB accruals of rebates £ millions Reckonable earnings less than £pa 1987–88 1988–89 1989–90 1990–91 1991ߝ92 1992–93 1993–94 2,000 0 0 0 0 0 0 0 3,000 4 4 2 2 0 0 0 4,000 23 22 18 14 8 7 4 5,000 65 63 54 43 31 26 17 6,000 127 127 120 95 74 60 43 7,000 206 205 209 175 139 120 85 8,000 299 301 308 275 230 205 145 9,000 397 399 420 394 338 306 224 10,000 487 500 540 519 464 427 316 Notes:
- 1. The figures are for accruals of rebate up to and including the year 1993–94. These will normally be paid in the following year.
- 2. The analysis uses reckonable earnings as data on income is not available.
Source:
One per cent. from the National Insurance Recording System.
GB accruals of incentives and additions £ million Reckonable earnings less than £ pa 1987–88 1988–89 1989–90 1990–91 1991–92 1992–93 1993–94 2,000 0 0 0 0 0 0 0 3,000 1 1 1 1 0 0 0 4,000 7 8 6 5 3 2 0 5,000 20 21 18 15 10 9 2 6,000 40 43 41 32 25 20 4 7,000 65 70 71 59 47 41 7 8,000 94 102 105 93 78 70 12 9,000 125 135 143 134 115 104 19 10,000 153 170 183 176 158 145 28 Source:
1 per cent. sample from the National Insurance Recording System.
Notes:
94W
- 1. The figures are for accruals up to and including the year 1993–94. These will normally be paid in the following year.
- 2. The analysis uses reckonable earnings as data on income are not available.
- 3. The figures between 1987–88 and 1992–93 refer only to the 2 per cent. incentive. These payments ceased to accrue after 1992–93.The figure for 1993–94 is for the 1 per cent. age-addition only, payable to all appropriate personal pension holders aged 30 and over. This began to accrue from April 1993.
§ Mr. DenhamTo ask the Secretary of State for Social Security what is the cost, in each year until the most recent, to the national insurance fund of(a) national insurance rebates, (b) tax relief and (c) other incentives paid in respect of personal pensions contracted out of the state earnings-related pension scheme of individuals with an annual income of (i) £2,000 or below, (ii) up to £3,000, (iii) up to £4,000, (iv) up to £5,000, (v) up to £6,000, (vi) up to £7,000, (vii) up to £8,000, (viii) up to £9,000 and (ix) up to £10,000. [2708]
§ Mr. HealdThe information up to the end of 1993–94, the latest year for which figures are available, is set out in the tables. Tax relief is not a cost to the national insurance fund as it is continually reimbursed by the Inland Revenue.