HC Deb 10 January 2000 vol 342 cc77-9W
Mr. Webb

To ask the Secretary of State for Social Security if he will estimate, for each of the 10 financial years starting from 2003–04,(a) expenditure on SERPS if the state second pension were not to be introduced, (b) expenditure on SERPS if the state second pension were to be introduced, (c) expenditure on the state second pension, assuming implementation in 2003–04 and a move to a flat rate scheme in 2008–09 and (d) the additional cost of national insurance rebates to those earning less than £9,000 per annum on each of the two alternative regimes proposed in his recent consultation document. [104140]

Mr. Rooker

The information is contained in the following tables. It is based on the assumptions that the State Second Pension will be introduced in April 2002 and that it will move to a flat-rate scheme in 2006–07 (five years after Stakeholder Pension Schemes are introduced). Costings based on introduction of the State Second Pension in April 2003 and a move to a flat-rate scheme in 2008–09 are not available at this time.

All figures are expressed in 1999–2000 price terms and are rounded to the nearest £0.1 billion. The Low Earnings Threshold in State Second Pension is set at £9,500 pa for that year.

Expenditure on SERPS if the State Second Pension were not introduced
£ billion
2002–03 5.8
2003–04 6.2
2004–05 6.6
2005–06 7.0
2006–07 7.4
2007–08 7.8
2008–09 8.2
2009–10 8.6
2010–11 8.9
2011–12 9.2

Expenditure on SERPS if the State Second Pension were to be introduced in April 2002
£ billion
2002–03 5.7
2003–04 6.2
2004–05 6.6
2005–06 7.0
2006–07 7.3
2007–08 7.7
2008–09 8.0
2009–10 8.3
2010–11 8.6
2011–12 8.8

Expenditure on the State Second Pension, if introduced in April 2002 and followed by a move to a flat-rate scheme in 2006–07
£ billion
2002–03 0
2003–04 0
2004–05 0
2005–06 0.1
2006–07 0.2
2007–08 0.3
2008–09 0.5
2009–10 0.6
2010–11 0.8
2011–12 1.0

The additional cost of national insurance rebates to those earning less than £9,500 pa based on the first approach contained in the recent consultation document The Structure of Rebates for the State Second Pension
£ billion
2002–03 0.1
2003–04 0.2
2004–05 0.2
2005–06 0.2
2006–07 0.3
2007–08 0.3
2008–09 0.3
2009–10 0.3
2010–11 0.3
2011–12 0.3

Note:

These extra rebates are for those contracted-out of the State Second Pension via Contracted-Out Salary Related schemes, Contracted-Out Money Purchase schemes and Appropriate Personal Pension schemes. The figures do not include additional rebates paid to people earning between £9,500 and £21,600

The additional cost of national insurance rebates to those earning less than £9,500 pa based on the second approach contained in the consultation document
£ billion
2002–03 0
2003–04 0.1
2004–05 0.1
2005–06 0.1
2006–07 0.1
2007–08 0.1
2008–09 0.2
2009–10 0.2
2010–11 0.2
2011–12 0.2

Note:

These extra rebates are for those contracted-out of the State Second Pension via Appropriate Personal Pension schemes. The figures do not include additional rebates paid to people earning between £9,500 and £21,600 between £9,500 and £21,600