HC Deb 19 January 1990 vol 165 cc486-8W
Mr. Flynn

To ask the Secretary of State for Social Security what are the most recent estimates of(a) the number of people contracted out in personal pension schemes and money purchase occupational schemes, respectively, (b) the cost to the national insurance fund of the 2 per cent. inducement under sections 1 and 7, respectively, of the Social Security Act 1986 in each year up to 1990–91, and how much of this cost relates to contributions in respect of each year from 1987–88 onwards and (c) the total cost to the national insurance fund of personal pension schemes and money purchase occupational schemes, respectively, in each year up to 1990–91.

Mr. Scott

[holding answer 12 January 1990]: I refer the hon. Member to appendix 7 of the report by the Government Actuary on the drafts of the Social Security Benefits Uprating Order 1990, and the Social Security (Contributions, Re-Rating) Order 1990 (Cm. 948) which was published yesterday. The number of people in contracted-out money purchase schemes is not known. Revenue forgone by the national insurance fund in 1988–89 in respect of personal pensions in 1987–88 was £289 million.

Mr. Flynn

To ask the Secretary of State for Social Security what information he has as to the sex and age distribution of persons contracting out by means of personal pension schemes.

Mr. Scott

[holding answer 12 January 1990]: The following information is based on a 1 per cent. sample of personal pension optants at a time when about 1.7 million applications had been processed. It relates to persons who paid some class 1 contributions for the year 1987–88 and who backdated a personal pension for that year. The table relates to the whole of the United Kingdom.

Age Male Female
16 to 19 121,300 93,100
20 to 24 309,000 199,130
25 to 29 271,700 110,700
30 to 34 125,200 46,600
35 to 39 184,100 60,600
40 to 44 138,100 21,900
45 to 49 4,800 500
TOTAL 1,154,200 532,500