§ Mr. AllenTo ask the Secretary of State for Social Security if he will express the cost of the Government's scheme on opting out of the state earnings-related pension scheme(a) in cost terms, (b) in terms of the pence reduction equivalent in income tax, (c) in terms of a reduction in poll tax, for the average poll tax payment and (d) in terms of a one-off cash payment to each pensioner.
§ Miss WiddecombeContracting out of the state earnings-related pensions scheme by virtue of an approved occupational pension scheme was introduced by the Social Security Pensions Act 1975. The Government Actuary's report on the Social Security Benefits Up-rating Order 1990 and the Social Security (Contributions) (Re-rating) Order 1990 (Cm. 948) showed that in 1990–91 the total contribution reductions attributable to both occupational and personal pensions would be about £7.6 billion of which about £2 billion would be in respect of rebates and incentives for personal pensions. It is not appropriate to express these reductions in other ways because they relate directly to benefits that would otherwise be a charge upon the national insurance fund, and the fund in turn depends upon the levels of national insurance contributions and the benefit expenditure which it is required to meet.