HC Deb 04 February 2000 vol 343 cc751-2W
Angela Smith

To ask the Secretary of State for Social Security when he will announce the outcome of the consultation on the structure of National Insurance Rebates for the State Second Pension. [109171]

Mr. Rooker

Following consultation we have decided that the structure of National Insurance Rebates for the State Second Pension will be as followsall rebates for contracting-out into a personal pension, including a personal pension based stakeholder pension, will be calculated to reflect the enhanced three part accrual rate in the State Second Pension; rebates will continue to be calculated as they are now for all occupational pension schemes, which will not be required to change their benefits; employees in all contracted-out pension arrangements on low pay (up to £9,500) will get a top-up from the State Second Pension; and the top-up should be extended to employees on moderate earnings (up to £21,600) in contracted-out occupational pension schemes.

These arrangements achieve the Government's objective of providing extra help for low and moderate earners in private pension schemes. They do so without causing any disruption to employers who provide occupational pension schemes. And the enhanced rebate will give a direct boost to saving in personal stakeholder schemes.

authorities who successfully prosecute fraudsters and who adopt the Verification Framework. I have also set out in table 2 the amounts of subsidy paid in respect of the Verification Framework, introduced in 1998–99, which puts checks in place to stop fraud getting into the benefit system.

Table 3 details the challenge fund scheme, which ran from 1996–97 to 1998–99, and encouraged councils to bid for funding for innovative anti-fraud initiatives.