HC Deb 08 February 1999 vol 325 cc66-7W
31. Sir Sydney Chapman

To ask the Secretary of State for Social Security what assessment he has made of the impact of the Government's proposed pensions reforms upon marginal savers. [68039]

Mr. Timms

The reforms outlined in "A New Contract for Welfare: Partnership in Pensions" should, through better quality and less expensive second pensions and more state support to reduce reliance on means tested benefits, increase the returns to voluntary saving.

35. Mr. Dismore

To ask the Secretary of State for Social Security what measures he is taking to increase financial security for retired people. [68043]

Mr. Timms

The Government's objectives are to provide security for those who cannot provide for themselves and to make it easier for people who can save, to do so. We have announced, in the Pensions Green Paper, that we will be replacing SERPS with a new State second pension for those on low incomes, or those who are unable to work because of caring responsibilities or disability. We also propose new stakeholder pension schemes, designed to help those on middle and higher incomes make provision for their retirement.

From April, we will introduce a new minimum income guarantee for pensioners of at least £75 a week for single people, and £116.60 for couples. We have announced that, as resources allow, over the long term, our aim is that it should rise in line with earnings so that pensioners can share in the growing prosperity of the nation. Those pensioners who are not able to build up an adequate pension during their working lifetime will be able to receive the minimum income guarantee.

36. Mr. Gordon Prentice

To ask the Secretary of State for Social Security what increase in the basic state pension would be required to take it to the level of the EU average. [68044]

Mr. Timms

This information is not available. Because of the diverse nature of state pension schemes in European countries, it is not possible to make meaningful calculations of the sort requested.

Mr. Bob Russell

To ask the Secretary of State for Social Security what plans he has to increase the over-80 age addition to the basic state pension. [68027]

Mr. Timms

We have no plans to increase the 25p age addition.

Mr. Laurence Robertson

To ask the Secretary of State for Social Security if he will estimate the cost of(a) increasing the basic state pension to £75 for all single pensioners and (b) providing income support to guarantee pensioners an income of at least £75 per week; and if he will make a statement. [69503]

Mr. Timms

I refer my hon. Friend to the written answer my right hon. Friend the then Minister of State, Department of Social Security gave the hon. Member for Newport, West (Mr. Flynn),Official Report, columns 624–25.

The estimated costs to Income Support of guaranteeing eligible pensioners an income of at least £75 per week, as outlined in the Comprehensive Spending Review package of measures for poorer pensioners, is £265 million.

Notes:

1. The estimate is based on increasing all the pensioner premium rates in April 1999 by £3.10 for single pensioners and £4.95 for pensioner couples, over and above uprating in line with prices. The April 1999–2000 rates of the single/couple personal allowance and the corresponding pensioner premium are as follows:

  • Income Support pensioners in receipt of the Ordinary Pensioner premium, those aged 60–74, singles—£75.00, couples—£116.60.
  • Income Support pensioners in receipt of the Enhanced Pensioner premium, those aged 75–79, singles—£77.30, couples—£119.85.
  • Income Support pensioners in receipt of the Higher Pensioner premium, those aged 80+, singles—£82.25, couples—£125.30.

2. The estimate is based on Departmental forecasts and uses the 1995–96 Family Resources Survey. The cost is at 1999–2000 prices and benefit levels, assumes existing levels of take up, and has been rounded to the nearest £5 million.