HC Deb 16 November 1998 vol 319 cc395-6W
37. Fiona Mactaggart

To ask the Secretary of State for Social Security what plans he has to make it easier for pensioners to have their pensions paid directly into bank accounts. [58405]

Mr. Denham

Under existing arrangements, pensioners are able to choose from a number of ways in which to receive their retirement pension. One way is to have it paid directly into their bank accounts.

Prospective pensioners are advised about the options for payment on the claim form issued to them before their retirement date.

The choice of payment to a bank account can be made at the time a claim is made or at any time thereafter.

There are no current plans to make any changes in these arrangements.

Mr. Flynn

To ask the Secretary of State for Social Security what would be the gross and net cost of(a) raising the basic retirement pension and linked benefits to £90 per week for a single person and £144 for a couple and (b) paying an additional non-contributory benefit of £40 per week to each person over pension age. [56016]

Mr. Denham

The information requested is in the table.

£ billion
Raise RP and linked benefits to £90 As previous column plus £40 non-contributory benefit
Gross cost 14.5 36.5
Means-tested benefit offset -3.0 -5.5
Net costs 11.5 30.5

Notes:

  1. 1. Gross costs have been estimated by the Government Actuary's Department
  2. 2. Means-tested benefit offsets are based on the 1995–96 Family Resources Survey and the May 1996 Income Support Quarterly Statistical Enquiry, both uprated to 1998–99 benefit and earnings levels. These do not take account of the changes to IS rates which will be introduced in 1999–2000
  3. 3. Estimates are rounded to the nearest £0.5 billion
  4. 4. Where both members of a couple are in receipt of a Category A pension, they have each been awarded a basic state pension of £90 per week, pro-rated according to the percentage of the full pension which they receive

Mr. Duncan Smith

To ask the Secretary of State for Social Security what total lifetime contribution to SERPs for a single man would provide an addition to the basic state pension equal to the increase in income support available under the forthcoming minimum pension guarantee of £75 a week. [58505]

Mr. Denham

A person retiring in 1999–2000 who had been contracted into SERPs since its introduction in 1978 would need to have had constant real earnings of approximately £100 per week (in 1999–2000) terms to receive a gross weekly income from the basic State Pension and SERPS of around £75.

Note: Assuming the individual is entitled to a full State Pension of £66.75 (April 1999 rate). The calculation does not take account of the fact that SERPs is taxable and so might not produce a net State Pension of £75, but since taxation is dependent largely upon individual circumstances it is not possible to take account of this detail.

Mr. Webb

To ask the Secretary of State for Social Security, pursuant to his answer to my hon. Friend the Member for Newbury (Mr. Rendel), of 4 November 1998,Official Report, columns 603-05, what estimate he has made of the total amount by which those entitled to SERPS have been underpaid (a) weekly and (b) since the introduction of NIRS 2 because of problems with that system. [59091]

Mr. Timms

[holding answer 10 November 1998]: The estimated total amount of SERPS being underpaid weekly is about £620,000. The total amount estimated to have been underpaid since April is about £7.7 million.