HC Deb 08 March 1999 vol 327 cc49-50W
23. Mr. Wilkinson

To ask the Secretary of State for Social Security by how much he expects the real spending powers of those dependent on the basic state old age pension to vary from that of those in employment in 1999–2000. [73060]

Mr. Darling

No one is expected to rely on the basic pension as their sole source of income. Short-term projections of the growth in pensioners' incomes are not available.

26. Mr. Corbyn

To ask the Secretary of State for Social Security what estimate he has made of the cost of administration of(a) the current state pension and (b) the secondary pension proposed in the Welfare Reform and Pensions Bill. [73063]

Mr. Timms

The administration costs charged to the National Insurance Fund for awarding and paying state retirement pension and collecting and maintaining records of National Insurance contributions were some £622 million in 1996–971. This represents about 1.5 per cent. of the Fund's income in that year1.

The Welfare Reform and Pensions Bill contains provisions to enable the setting up of flexible, secure, value for money stakeholder pension schemes. Administration costs should be low; both because of the ways schemes will be set up and run, and because we propose to set a minimum standard for the charges that can be made. 1 Source: Departmental Report 1998–99, CM3913, National Insurance Fund Account 1996–97, HC 465

27. Dr. George Turner

To ask the Secretary of State for Social Security what assessment he has made of the difficulties faced by those on low and modest incomes in making adequate provision for retirement. [73064]

Mr. Timms

The government recognise the difficulties faced by those on low and modest incomes. That is why we are guaranteeing a decent income in retirement for all pensioners through the Minimum Income Guarantee. We plan to replace SERPS with a new State Second Pension to ensure that everyone with a lifetime of work behind them will build up rights to a pension which will take them above a Minimum Income Guarantee; and the Welfare Reform and Pensions Bill contains provisions to enable the setting up of flexible, secure value for money stakeholder pension schemes which will be particularly suitable for people on modest incomes.

28. Dr. Naysmith

To ask the Secretary of State for Social Security what plans he has to improve the pensions of long-term disabled people. [73065]

Mr. Timms

I refer my hon. Friend to the Written Answer I gave my hon. Friend the Member for Coventry, South (Mr. Cunningham) on 8 February 1999,Official Report, column 65.

39. Ms Dari Taylor

To ask the Secretary of State for Social Security how he proposes to ensure better security in retirement for the poorest households. [73076]

Angela Eagle

The measures proposed in the Green Paper, A new contract for welfare: Partnership in Pensions are intended to ensure that people who have worked throughout their working life on a low income will still be able to retire on an income above the level of the Minimum Income Guarantee. For the poorest households, the Minimum Income Guarantee will provide a secure income, which we intend over time and as resources allow, to increase in line with average earnings so that all pensioners, including the poorest, can share in the rising prosperity of the nation.