Police and Fire Services (Hansard, 10 May 1996)

§ Mr. Alex Carlile
To ask the Secretary of State for the Home Department what additional resources the Government are making available to meet increased costs from pensions, inflation and other unavoidable costs in the police and fire services; and if he will make a statement. [28245]

§ Mr. Maclean
[holding answer 9 May 1996]: For the police service in England and Wales the settlement for 1996–97 included an extra £79.9 million for pensions, £123.6 million for pay and other inflationary pressures, and a further £20 million to enable the police service to recruit 1,000 additional constables by the end of 1996–97. The Association of Chief Police Officers and the police authority associations play a valuable role in forecasting additional pressures on police authority budgets. Their views will be taken into account in the 1997–98 spending round.
For the fire service for England, the settlement for 1996–97 included an extra £14 million for pensions and £3 million for training. The total fire standard spending assessments are distributed to individual fire authorities by means of a formula. This was adjusted to take account of factors for pensions and fire safety for 1996–97 in line with recommendations by the Audit Commission. The 304W formula is looked at each year and local authority representatives play a full part in that review.

§ Mr. Carlile
To ask the Secretary of State for the Home Department (1) what plans he has to increase the length of service for police and firemen from 30 years to 35 years before securing a full pension; and if he will make a statement; [28250]
(2) what percentage of (a) firemen and (b) police officers retire on ill health grounds with less than 30 years service; and if he will make a statement on how these figures affect each pension scheme. [28252]

§ Mr. Maclean
[holding answer 9 May 1996]:The information about the number of retirements on ill health grounds is not available in the form requested. The details of the police and fire service pension schemes have been under review. The results will shortly be the subject of consultation with police and fire interests.

§ Mr. Carlile
To ask the Secretary of State for the Home Department what was the cost in real terms of the police and fire service pension schemes in each of the last 10 years; what estimate he has made of these costs for each of the next 10 years; and if he will make a statement. [28251]

§ Mr. Maclean
[holding answer 9 May 1996]: The net cost of the police and fire pensions scheme between 1985–86 and 1994–95, as actual expenditure and at 1996–97 prices, is set out in the tables. Projections of costs from 1995–96 to 1999–2000 are available only in respect of police pensions as set out in the tables.
Additional provision for police pensions has been made available in the last four settlements. The rising trend in police and fire pensions costs is being monitored and assessed in the context of each spending round.

Police pensions

£ million

Year Net expenditure (actual) Net expenditure (at 1996–97 prices)

Actual outturn¹

1985–86 187 306

1986–87 224 356

1987–88 237 357

1988–89 254 359

1989–90 292 386

1990–91 333 407

1991–92 409 471

1992–93 461 510

1993–94 543 584

1994–95 611 645

Estimates²

1995–96 702 721

1996–97 793 793

1997–98 830 810

1998–99 884 848

1999–2000 949 —

¹ Outturn figures from 1985–86 to 1993–94 were calculated from gross pensions expenditure and pensions income (pensions holding account) in the Chartered Institute of Public Finance and Accountancy's Police Statistics (Actuals). In the absence of CIPFA Actuals for 1994–95, figures for 1994–95 were calculated from authorities' returns to the Home Office (revenue grant claim forms).

² Projections from 1995–96 onwards were derived from Government Actuary Department models. Actual expenditure was expressed at 1996–97 prices using the latest GDP deflators which run to 1998–99.

305W

Fire pensions

£ million

Year Net expenditure (actual) Net expenditure (at 1996–97 prices)

Actual outturn¹ 50 82

1985–86 58 92

1986–87 64 96

1987–88 73 104

1988–89 84 111

1989–90 98 120

1990–91 117 135

1991–92 131 144

1992–93 147 158

1993–94 159 168

1994–95

¹ Outturn figures from 1985–86 to 1994–95 were calculated from authorities' revenue outturn returns to the Department of the Environment and the Welsh Office.

Police pensions
£ million
Year	Net expenditure (actual)	Net expenditure (at 1996–97 prices)
Actual outturn¹
1985–86	187	306
1986–87	224	356
1987–88	237	357
1988–89	254	359
1989–90	292	386
1990–91	333	407
1991–92	409	471
1992–93	461	510
1993–94	543	584
1994–95	611	645
Estimates²
1995–96	702	721
1996–97	793	793
1997–98	830	810
1998–99	884	848
1999–2000	949	—
¹ Outturn figures from 1985–86 to 1993–94 were calculated from gross pensions expenditure and pensions income (pensions holding account) in the Chartered Institute of Public Finance and Accountancy's Police Statistics (Actuals). In the absence of CIPFA Actuals for 1994–95, figures for 1994–95 were calculated from authorities' returns to the Home Office (revenue grant claim forms).
² Projections from 1995–96 onwards were derived from Government Actuary Department models. Actual expenditure was expressed at 1996–97 prices using the latest GDP deflators which run to 1998–99.

Fire pensions
£ million
Year	Net expenditure (actual)	Net expenditure (at 1996–97 prices)
Actual outturn¹	50	82
1985–86	58	92
1986–87	64	96
1987–88	73	104
1988–89	84	111
1989–90	98	120
1990–91	117	135
1991–92	131	144
1992–93	147	158
1993–94	159	168
1994–95
¹ Outturn figures from 1985–86 to 1994–95 were calculated from authorities' revenue outturn returns to the Department of the Environment and the Welsh Office.