HC Deb 04 February 1991 vol 185 cc58-60W
Mr. Meacher

To ask the Secretary of State for Social Security if, pursuant to his answers of 12 December 1990,Official Report, columns 427–28 and 14 January, Official Report, columns 394–95, on the value of the state earnings related pension scheme, he will now give the figures from 1990 to 2029 on the same basis but at April 1990 prices.

Miss Widdecombe

The information requested is in the table. It is important to note that calculations of this nature can provide only a hypothetical view of the distant future based, as they are, on unchanged assumptions about economic variables and policies.

Year UEL(£s per week) Average Earnings (£s per week) Half Average Earnings (£s per week)
1990 48.65 31.85 12.70
1991 53.20 34.95 13.90
1992 57.55 38.10 15.15
1993 62.15 41.50 16.65
1994 66.70 44.90 18.00
1995 71.35 48.40 19.45
1996 76.25 52.25 21.15
1997 81.10 56.00 22.75
1998 86.00 59.90 24.45
1999 86.55 60.75 24.80
2000 86.45 61.15 25.10
2001 86.15 61.35 25.25
2002 85.80 61.55 25.40
2003 85.45 61.70 25.55
2004 85.05 61.85 25.70
2005 84.65 61.95 25.85
2006 84.10 61.95 25.90
2007 83.55 61.95 26.00
2008 82.95 61.90 26.05
2009 82.35 61.80 26.10
2010 82.85 62.65 26.50
2011 83.35 63.50 26.95
2012 83.90 64.35 27.45
2013 84.40 65.15 27.85
2014 84.95 66.00 28.35
2015 85.55 66.80 28.80
2016 86.20 67.70 29.35
2017 86.80 68.50 29.85
2018 87.40 69.30 30.30
2019 88.05 70.15 30.85
2020 88.65 70.95 31.35
2021 89.35 71.80 31.90
2022 90.00 72.60 32.45
2023 90.70 73.40 33.00
2024 91.35 74.25 33.55
2025 92.05 75.05 34.10
2026 92.80 75.90 34.70
2027 93.50 76.70 35.30
2028 93.05 77.05 35.70
2029 92.65 77.30 36.05

Weekly amounts of Additional pension payable on retirement on 6 April in the stated year with earnings equal to the Upper Earnings Limit (UEL), average earnings and half average earnings; at April 1990 prices.

From 1990 onwards 5 per cent. prices and 6.5 per cent. earnings growth is assumed.

Mr. Hinchliffe

To ask the Secretary of State for Social Security what was his estimate of the loss to the national insurance fund through individuals contracting out of

Castlegate David Lane Shakespeare Street Station street
Grade 7 1.0 1 1.0 2.0
SEO 1.0 — — —
HEO 7.0 6 7.0 6.0
Local Officer 1 30.0 29 33.0 32.5
Local Officer 2 66.0 61 64.5 66.0
Administrative Assistant 13.5 21 12.5 19.5
Typing Manager — — 1.0 —
Typist 4.0 2 3.0 3.0

state earnings-related pension scheme for each year since the implementation of the Social Security Act 1986; and what has been the actual loss for each of these years.

Mr. Jack

It was not possible to make an advance estimate of the income likely to be forgone to the national insurance fund as a result of individuals choosing personal pensions as a means of contracting out of SERPS. The table shows the actual amounts of contracted-out rebates and incentives paid in respect of such optants for 1988–89 and 1989–90. The table also shows the amounts used by the Government Actuary as working assumptions for the purposes of his reports on the national insurance fund in respect of those years.

Personal pensions standard rebates and incentives Government Actuary's working assumptions
£ million
Assumptions for reports made during
1988–89 1989–90 Actual amounts paid in the year
1988–89 260 n/a 289
1989–90 690 2,582 2,434

The national insurance fund has a substantial balance of past surpluses and this is set to remain above the minimum recommended by the Government Actuary.