§ Mr. DewarTo ask the Secretary of State for Social Security what estimate he has made for the take-up and cost to the Exchequer of the proposed 1 per cent. additional rebate for personal pension holders in 1993–94872W and for subsequent years; and if he will publish figures separately for (a) people who already have an appropriate personal pension, (b) people newly contracting out into a personal pension scheme, (c) men and (d) women.
§ Miss WiddecombeThis measure, which will cost the national insurance fund an estimated £165 million in 1994–95 will benefit in the region of 2 million appropriate personal pension holders aged 30 and over. There is nil cost in 1993–94 because payments are made after the end of the relevant tax year. The 2 million holders are estimated to comprise 1.5 million men at a cost of £135 million and 0.5 million women at a cost of £30 million. The cost and split between men and women are estimated to be broadly similar in subsequent years until a new rebate structure is implemented. This is expected to be in 1996–97.
The measure is designed to ensure that appropriate personal pensions remain attractive across the age range for the majority of current holders. We anticipate that in the relevant years there will continue to be about 5 million appropriate personal pension holders.