§ Mr. CorbynTo ask the Secretary of State for Social Security if she will list the full state pension as a proportion of average earnings for each year since 1980 and her estimate for the next three years assuming uprating is linked to prices. [6597]
§ Mr. DenhamWe believe that all pensioners should share fairly in rising national prosperity and are committed to examine the means of delivering more help to the poorest pensioners. We will retain the basic State pension as the foundation of pension provision, increasing it at least in line with prices.
The information requested is set out in the table.
Year Standard rate of Category A retirement pension as a proportion of average earnings (per cent.) November 1980 22.6 November 1981 22.4 November 1982 23.1 November 1983 21.7 November 1984 21.4 November 1985 21.4 July 1986 20.5 April 1987 19.9 April 1988 18.8 April 1989 18.2 April 1990 17.8 April 1991 18.3 April 1992 17.8 April 1993 17.7 April 1994 17.7 April 1995 17.5 April 1996 17.4 1997 17.1 1998 16.9 1999 16.6 1. For years up to and including 1996, both the actual standard rate 376W of Category A retirement pension and actual average earnings for all full-time adults from the News Earning Survey are available, and these figures are used to produce the proportions shown in Table 6.1 of The Abstract of Statistics for Social Security Benefits and Contributions and Indices of Prices and Earnings 1996 Edition. However, the published figure for 1996 was provisional only, and the final figure is shown in the table.
2. To calculate the proportion of average earnings represented by the standard rate of category A retirement pension for years after 1996, it has been assumed that retirement pension rates remain constant in price terms while average earnings increase by 1.5 per cent. each year.
3. All figures are rounded to the nearest 0.1 per cent.
§ Mr. CorbynTo ask the Secretary of State for Social Security which pensioner organisations she has met since her appointment; and what other discussions she plans to hold prior to the announcement of the state pension level for 1998–99. [6600]
§ Mr. DenhamAmongst the meetings I have attended was the National Pensioners Convention Conference in Blackpool on 17 June and my right hon. Friend, the Secretary of State, attended the AGM of the Southwark Pensioner's Forum.
The pensions review, which will be announced shortly, will look at the central areas of insecurity for elderly people, including all aspects of the basic pension and its value. In undertaking this review we will ensure that the voices of pensioners are put at the centre of Government. I anticipate meeting representative pensioners organisations on a number of occasions during the visit.
We believe that all pensioners should share fairly in rising national prosperity and we are committed to examining ways to deliver more automatic help to the poorest pensioners. We will retain the basic State pension as the foundation of pension provision, increasing it at least in line with prices and we intend to have a number of discussions with interested groups before the level of State pension for 1998–99 is announced.
§ Mr. BercowTo ask the Secretary of State for Social Security (1) if she will ensure that the Government Actuary reviews the level of contracted-out rebates immediately following any changes in the tax regime that reduce the investment income of contracted-out occupational, and appropriate personal pension, schemes; [6563]
(2) if she will estimate the level of age-related payments in respect of personal pension schemes for the year 1997–98, if such schemes did not receive a credit of advance corporation tax; [6564]
(3) if she will estimate the impact on expenditure from the national insurance fund by way of additional age-related payments to personal pension schemes in the year 1997–98, if their level had been calculated on the assumption that contracted-out occupational pension schemes did not receive a credit of advance corporation tax; [6565]
(4) what would be the charge on expenditure from the national insurance fund in respect of additional age related payments to contracted-out money purchase schemes for contracted-out employment in the financial year 1997–98, if their level had been calculated on the assumption that contracted-out occupational pension schemes did not receive a credit of advance corporation tax; [6566]
377W(5) what would be the increase in the (a) financial primary and secondary class 1 and class 4 national insurance contributions, (b) class 2 and class 3 national insurance contributions and (c) percentage of payments to the national insurance fund under section 2 of the Social Security Act 1992 needed to offset the cost to the national insurance fund of an increase in the flat rate contracted-out rebates to contracted-out occupational pension schemes and in age-related payments to contracted-out money purchase and appropriate personal pension schemes is such schemes did not receive a credit of advance corporation tax; [6568]
(6) if she will estimate the reduction in income to the national insurance fund in respect of contracted-out employment in the year 1997–98, if the level of the national insurance rebates to contracted-out (a) salary-related and (b) money purchase schemes had been calculated on the assumption that the schemes did not receive a credit of advance corporation tax; [6569]
(7) if she will estimate the reduction in (a) primary and (b) secondary Class 1 national insurance contributions on contracted-out money purchase schemes and the levels of age rebated payments to such schemes in respect of contracted-out employment in the year 1997–98, if such schemes did not receive a credit of advance corporation tax; [6570]
(8) if she will estimate the reduction in (a) primary and (b) secondary class 1 national insurance contributions for contracted-out salary-related schemes in respect of contracted-out employment in the year 1997–98, if such schemes did not receive a credit of advance corporation tax. [6571]
§ Mr. DenhamWhat matters is the long run performance of investments and the health of companies providing occupational and personal pensions. It is the long term rates of return on pension fund investments which are reflected in the national insurance rebates. The Budget promotes investment. Like other shareholders, members of pension schemes will benefit from the better climate for investment by companies, as will the companies which provide occupational and personal pensions.
We shall consider whether it is necessary to ask the Government Actuary to look again at the assumptions underlying the national insurance rebates for contracting-out of SERPS.
§ Mr. CorbynTo ask the Secretary of State for Social Security what estimate she has made of the cost of increasing the state pension to the basic level for all persons entitled to income support as a supplement to their existing pension. [6609]
§ Mr. DenhamWe estimate that one in four pensioners are entitled to income Support. We do not have enough information to estimate the costs of bringing all those in this group who have less than a full basic Retirement Pension up to that level. However, we are commissioning research to determine why some pensioners do not claim the income Support to which they are entitled; we are also committed to reviewing the central areas of insecurity for our older citizens.