§ Brain WhiteTo ask the secretary of State for work and Pensions what support his Department gives to low-paid workers to build up pension entitlememt. [36358]
§ Mr. McCartneyForm 6 April, some 18 million employees will start to build up better state pensions when state Second Pension reforms SERPS. In particular people earning £10,800 or less will get at least twice as much as they would have done under SERPS, and any body earning up to £24,600 a year will also benefit, whether or not they are contribution to a private pension. In addition, State second Pension will allow some two million carers and a similar number of people with long term disabilities to build up an additional (2nd tier) state pension for the first time.
The minimum income guarantee already boosts the retirememt income of nearly two million pensioners. We also estimate that around half of all pensioner households will be eligible for the pension Credit when it is introduced in October 2003—on average pensioners will be better off by £400 a year with some getting up to £1,000.