§ Sir Archy KirkwoodTo ask the Secretary of State for Work and Pensions if he will estimate the cost of paying the basic state pension, deferred by five years, at(a) 110.4 per cent., (b) 120 per cent., (c) 130 per cent., (d) 140 per cent. and (e) 150 per cent. assuming the number of people choosing to defer their pension remains unchanged. [97663]
§ Malcolm WicksFor every year a person defers drawing their State Pension, they are entitled to receive increases of 7½ percentage points.
This rate is due to increase to 10.4 percentage points in 2010. In the 2002 Pensions Green Paper Simplicity, security and choice: Working and saving for retirement (Cm 5677) it was announced that the government was consulting on whether this increase should be brought forward.
The following table shows the additional cost in selected years if we were to increase the deferral rate from 2004, assuming the number of people choosing to defer their State Pension remains unchanged.
535W
§ Sir Archy KirkwoodTo ask the Secretary of State for Work and Pensions what the cost has been to the Exchequer of deferred sions, in(a) cash and (b) real terms, over the last 10 years. [97665]
§ Malcolm WicksThe answer is not available in the format requested.
Prior to 1999, the amount of inherited increments in payment was not recorded and so we cannot accurately estimate the total expenditure on increments before 1999. Such information as is available is shown in the following table.
Cost of paying deferred State Pension £ million Year Cash Real 2002 450 460 2001 450 470 2000 450 470 1999 450 490 Notes:
- (a) Cash terms refer to the annual cost of paying all forms of increments, based upon administrative data from 30th September of each year.
- (b) Real terms are calculated by taking the level of the Retail Price Index in September of each year and up rating to the level of the April 2003 Retail Price Index level.
Results include both Great Britain and overseas cases.
Figures rounded to nearest £10 million.
§ Sir Archy KirkwoodTo ask the Secretary of State for Work and Pensions how many people have deferred their pension in each of the last five years by up to(a) one year, (b) two years, (c) three years, (d) four years and (e) five years. [97666]
§ Malcolm WicksIt is not possible say how many people are deferring their State Pension at a single point in time because it is not necessary to inform the Department for Work and Pensions of an intention to defer. Administrative data only records people after they have finished their deferral and claimed State Pension.
The duration of deferral for pensioners who are now in receipt of State Pension has been calculated based upon the amount of increments in payment, from which the duration of deferral is calculated.
The following table shows the number of people aged five years over State Pension age who receive State Pension including increments, along with the duration of their deferral period.
536W
Number of people aged 5 years above the State Pension age that deferred their State Pension Deferral period Total Under 1 year 10,000 1 to 2 years 9,000 2 to 3 years 4,000 3 to 4 years 3,000 4 to 5 years 4,000 5 + years 1,000 All 31,000 Notes:
- 1. Based upon administrative data from September 2002
- 2. Numbers relate to men aged 70 and women aged 65
- 3. Numbers exclude people in receipt of inherited increments only
- 4. Numbers include recipients of a State Pension in Great Britain and overseas
- 5. Numbers rounded to nearest 1,000
- 6. People who have still not claimed their State Pension by the age of 65 (women) or 70 (men) are not included in the table above