§ Mr. WebbTo ask the Secretary of State for Social Security what the effect would be of an immediate increase in the age addition to the basic state pension to(a) £5 for the over 80s, (b) £5 for the over 80s and £3 for 471W the over 75s and (c) £10 for the over 80s and £5 for the over 75s, on the number of pensioners receiving income support in (i) 1999–2000 and (ii) 2000–01. [65422]
§ Mr. TimmsThe information is in the table.
Reduction in the number of pensioner benefit units receiving income support with the proposed age additions 1999–2000 2000–01 £5 to 80+s -40,000 -40,000 £3 to 75–79s, £5 to 80+s -50,000 -60,000 £5 to 75–79s, £10 to over 80+s -140,000 -160,000 Notes:
1. Estimates are based on the 1995–96 Family Resources Survey and the Income Support Quarterly Statistical Enquiry.
2. Estimates are rounded to the nearest 10,000 and provide broad orders of magnitude.
§ Mr. WebbTo ask the Secretary of State for Social Security what estimate he has made of the combined value of the basic pension and the proposed second state pension as a proportion of average earnings once the new scheme has fully matured, for someone with annual earnings of(a) £4,500, (b) £9,000, (c) £13,500, (d) £18,000 and (e) £22,500. [65426]
§ Mr. TimmsThe information is in the table.
Combined value of basic state pension and state second pension as a proportion of national average earnings in retirement Annual earnings (£) Percentage 4,500 21 9,000 21 13,500 23 18,000 25 22,500 26 Notes:
1. Results are presented for a person who begins work at age 16 in 2002; earns the amounts specified (in 1998 earnings terms) throughout their working life; retires at age 65 in 2051.
2. Real average earnings are assumed to grow at 1.5 per cent. per annum.
3. 1998 national average earnings are taken from the New Earnings Survey 1998 as average gross weekly earnings for full-time employees on adult rates whose pay was not affected by absence during the survey pay-period.
§ Mr. CousinsTo ask the Secretary of State for Social Security (1) what is his policy on whether(a) lump sums paid as part of pensions on retirement and (b) capital sums held as part of approved personal plans before annuitisation will be subject under the minimum pensions guarantee to the savings limits and tariff income schedule regimes of existing income support; [66454]
(2) if the capital resources assessment rules accompanying the minimum pension guarantee have been decided; and which existing income support capital resources rules will be revised. [66455]
§ Mr. TimmsInitially, the rules governing the treatment of resources will remain unchanged. However, in "Partnership in Pensions" we made it clear that we will examine ways of amending the rules to reward better those who have saved for their retirement. We hope to bring forward proposals later in this Parliament.