HC Deb 26 January 2004 vol 417 cc96-7W
Mr. Webb

To ask the Secretary of State for Work and Pensions if he will estimate the average level of employer contributions, net of tax relief, into stakeholder pension schemes since their introduction. [150458]

Malcolm Wicks

Inland Revenue data show that in 2001–02 the average contribution to stakeholder pension schemes made by employers was £420 per annum.

This figure represents the average contribution for the financial year 2001–02 to schemes where an employer is contributing. The data are for the full year and does not include a scheme start date, so where a scheme was started in-year, although the contributions would only have been made for part of the year they have been averaged over 12 months. Therefore the estimate will not reflect the true annual average if the scheme had operated for a full year.

At present comparable figures for subsequent years are not yet available as although we have data on total contributions made and number of schemes receiving tax relief, data showing the schemes which received employer contributions has not yet been released; data for 2002–03 will become available in summer 2004.

Between 2001–02 and 2002–03 total contributions to stakeholder schemes by employers have risen by 267 per cent. from £150 million per annum to £400 million per annum.