§ Mr. WillettsTo ask the Secretary of State for Work and Pensions, (1) pursuant to his answer of 16 May 2002,Official Report, column 849W, on pensions, what the average amount contributed to pension in 2001 was for each member covered by a funded pension arrangement; and if he will make a statement on his assessment of the adequacy of this amount; [64205]
(2) pursuant to his answer of 16 May 2002, Official Report, column 849W, on pensions, if the figures in Table 1 exclude contributions to unfunded occupational pension arrangements; and if the number of members in Table 3 includes members of unfunded occupational pension arrangements. [64204]
§ Mr. McCartneyContributions to unfunded occupational pensions are excluded.
It is not possible to calculate reliably average contribution amounts per person. This is because relevant figures are not available from comparable data sources.
In my written answer to the hon. Member, 16 May 2002, Official Report, column 849W, I provided estimates of contributions to private pensions. These figures contained some transfers, as indicated in footnote 6 to table 1. But footnote 6 also stated 'Information on the amount of these transfers is not available.' However I am now advised by ONS that information on transfers is 88W derivable and could be significant. The ONS are examining urgently the basis on which such figures could be reliably produced and published.
My answer of 16 May used figures published in ONS's MQ5 publication to estimate contributions to private pensions. Such contributions can also be estimated by using Inland Revenue figures on tax relief given on pension contributions and the average rates of this tax relief. My hon. Friend the Financial Secretary to the Treasury has provided details today in answer to a question from the hon. Member. The implication of the published Inland Revenue series is of a clear increase in the rate of contributions.
However, the statistical breakdown of figures relating to private pensions produced by either method is complex. ONS are carrying out an investigation to establish the best way to calculate and present such figures as a matter of priority. This work will include external experts. Until it concludes, estimates of the level of pension contributions will need to be treated with particular care.