§ Mr. DenhamTo ask the Secretary of State for Social Security what would be the cost to the national insurance fund of all current holders of an APP who make no additional contributions with an annual income of(a) £2,000 or below (b) up to £3,000, (c) up to £4,000, (d) up to £5,000, (e) up to £6,000, (f) up to £7,000, (g) up to £8,000, (h) up to £9,000 and (i) up to £10,000 opting back into SERPS.
§ Mr. ArbuthnotThe information is not available in the form requested.
§ Mr. DenhamTo ask the Secretary of State for Social Security what is the total cost to date to the national insurance fund of national insurance rebates, tax relief and other incentives paid in respect of personal pensions contracted out of the state earnings-related pension scheme.
§ Mr. ArbuthnotI refer the hon. Member to my reply of Tuesday 10 January to the hon. Member for Ealing, Southall (Mr. Khabra),Official Report, column 56.
There is no cost to the national insurance fund of tax relief as the fund is continually reimbursed by the Inland Revenue for any payments of tax relief. Total tax relief to appropriate personal pensions amounted to £0.8 billion up to and including 1992–93.
§ Mr. DenhamTo ask the Secretary of State for Social Security what is the cost to date to the national insurance fund of national insurance rebates, tax relief and other incentives paid in respect of personal pensions contracted out of the state earnings-related pension scheme of individuals with an annual income of(a) £2,000 or below (b) up to £3,000, (c) up to £4,000, (d) up to £5,000, (e) up to £6,000, (f) up to £7,000, (g) up to £8,000, (h) up to £9,000 and (i) up to £10,000.
§ Mr. ArbuthnotThe information is shown in the table.
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Rebates and incentives for Personal Pension holders with earnings under (£ per annum) Total up to and including 1991–92 GB, £ millions Cumulative by earnings 2,000 0 3,000 16 4,000 114 5,000 341
Rebates and incentives for Personal Pension holders with earnings under (£ per annum) Total up to and including 1991–92 GB, £ millions Cumulative by earnings 6,000 724 7,000 1,246 8,000 1,887 9,000 2,600 10,000 3,350 Notes:
1. Data is based on an analysis of a 1 per cent. sample of people who are recorded on the Department of Social Security national insurance recording system as contributing to an appropriate personal pension scheme.
2. The figures are for accruals of rebates and incentives up to and including 1991–92 which are normally paid in the next year. The figures are therefore comparable with figures for total payments up to and including 1992–93.
3. The cost of tax relief is not included as this is not a charge to the national insurance fund.
4. Earnings are used, as a breakdown by income is not available.
The following table shows estimates of tax relief.
Tax relief for PP holders with earnings under (£ per annum) Total up to and including 1991–92 GB, £ millions 2,000 0 3,000 2 4,000 10 5,000 40 6,000 62 7,000 107 8,000 163 9,000 223 10,000 289