HC Deb 14 May 1991 vol 191 cc120-1W
Mr. Nellist

To ask the Secretary of State for Social Security how many people have now opted out of the state earnings-related pension scheme at the latest convenient date; what was his Department's main working assumption as to the numbers by that date; what has been the total cost of encouraging people to opt out of the scheme, at the latest convenient date; what was his Department's main working assumption of the cost by that date; what would be the implications for national insurance contributions from 1993 per person to meet the cost of these general incentives; and if he will make a statement.

Miss Widdecombe

I refer the hon. Member to the reply given to the hon. Member for Oldham, West (Mr. Meacher) on 6 March 1991 at columns170–71. It was not possible to estimate in advance the numbers who would choose to opt out of SERPS or the revenue likely to be forgone by the NI fund. The cost of incentive payments has been absorbed by the NI fund and it is expected that this will continue to be the case until 1992–93, the last year for which incentive payments will be made under existing legislation.

Mr. Allen

To ask the Secretary of State for Social Security if he will estimate the total cost to the national insurance fund in the financial year 1991–92 and in a full year of the 2 per cent. banded earnings offered as an incentive to opt out of SERPs, giving figures for Great Britain and the United Kingdom.

Miss Widdecombe

[pursuant to the reply, 2 May 1991, c. 330]: The estimate of the reduction in gross public expenditure of £2 billion a year in 2010, rising to £14 billion a year in 2035 refers to estimates of the effects of the changes in SERPs contained in the 1986 Social Security Act, at 1990 prices, as given in reply to the hon. Member for Oldham, West (Mr. Meacher) on 26 July 1990, column 486, and not to the effect of encouraging people to take out personal and occupational pensions.

Mr. Flynn

To ask the Secretary of State for Social Security (1) what assumptions were made, for the purposes of his answers to the hon. Member for Nottingham, North (Mr. Allen) on 2 May,Official Report, column 330, as to the future rates of contracted-out rebates, the ages at which members of personal and money-purchase occupational schemes would resume full contributions to the state scheme and the numbers who would do so;

(2) what assumptions as to numbers contracted out and contributing to personal pension schemes in each year were made in arriving at the estimated reductions in gross public expenditure in 2010 and 2035 given in his answer to the hon. Member for Nottingham, North (Mr. Allen) on 2 May, Official Report, column 330; how much of the reduction relates to personal pension schemes, money-purchase occupational schemes and other occupational schemes; what would be the net reduction, taking account of contributions forgone; and what would be the gross and net reductions if those assumed to commence contributing to personal and other money-purchase schemes after 1991–92 continued paying full contributions to the state scheme instead.

Miss Widdecombe

I refer the hon. Member to the reply given to the hon. Member for Nottingham, North (Mr. Allen) today.