§ Mr. WebbTo ask the Secretary of State for Work and Pensions if he will estimate the annual cost of running the Pension Protection Fund, broken down by(a) direct costs of employing staff, (b) costs paid to outside bodies including (i) investment managers and (ii) actuaries and (c) the costs of collecting the levy by the New Pension Regulator. [175945]
1807W
§ Malcolm WicksOur initial estimates indicate that running costs for the early years of the PPF are between £9–15 million per year. These are order of magnitude figures and are based on a number of assumptions made very early on about the way the PPF might operate. The operating model and the detailed processes underpinning that model are now being refined; this is enabling us to have a much clearer view about not only the potential supply routes, but also the number of people, and necessary skills set, the PPF will need to deliver its business. It is important to note that final decisions relating to operations are very much a matter for the in-coming board. Estimates will be revised once these decisions are firmed up.
With those points in mind, the early numbers show that on the basis of PPF employing around 100 staff—including professionals such as actuaries—the staff costs represent approximately a third of the total. The charges relating to investment managers are not factored into the admin costs, as they are part and parcel of the on going activity relating to the Fund itself. Assumptions relating to the charges in this area are, at this stage, commercially sensitive. We estimate costs relating to levy collection are in the order of less than half a million pounds.