§ Miss McIntoshTo ask the Secretary of State for Work and Pensions what assessment she has made of the adequacy of pension provision for women. [97718]
§ Mr. McCartneyThe Green Paper takes a comprehensive look at the issue of women, work and pensions.
It recognises that it is often harder for women to build up state and private pensions rights than it is for men. This is because of a combination of factors including shorter working lives, lower pay and lower occupational pensions coverage among part-time workers. The Green Paper also recognises that the current generation of female pensioners are over represented in those groups of pensioners with low incomes.
We have already taken action to address these issues.
The introduction of the State Second Pension, from April 2002 provides extra help to those on low or moderate earnings, to certain carers and to certain people with long-term illness and disability.
The Government have enabled some low paid workers to get national insurance benefits without paying contributions. From April 2000, the start point of national insurance contributions was separated from the lower earnings limit (LEL) for employees and aligned with the personal allowance for income tax. From April 2002–03, national insurance contributions
Age Gross income(£ per week) Deduction per £1 Net increase in income per £1 Description 60-64 88.75–103.60 1.00 0.00 Pension credit [guarantee only] + 10 per cent. tax 65-74 127.10–140.40 0.46 0.54 Pension credit [savings credit] + 10 per cent. tax 75+ 129.25–140.20 0.46 0.54 Pension credit [savings credit] + 10 per cent. tax Notes:
Calculations are for 2003–04 benefit and tax rates.
The personal tax allowances are consistent with announcements made in the Pre-Budget Report 2002. Income tax bands have not yet been announced. For the purposes of this PQ they have been assumed to increase in line with normal indexation.
Gross Income bands are defined using a 52-week year and then rounded to the nearest 5 pence.
Taxation is defined as income tax only and excludes National Insurance contributions, which people below state pension age may pay.
The effect of Housing Benefit and Council Tax Benefit is not included.
The deductions and gross income bands may vary for people with entitlement to additional amounts in Pension Credit.
Pension Credit entitlement is calculated according to post tax income.
The guarantee within pension credit will be £102.10 for a single person in 2003–04 in net income terms.
For single people, only those in the above income bands and age groups will be eligible for pension credit and be liable to pay income tax.