HC Deb 07 June 1995 vol 261 cc205-7W
Lady Olga Maitland

To ask the Secretary of State for Education if she will make a statement on the future administration of teachers' pensions in England and Wales. [27443]

Sir George Young

Provisional estimates at 1995–96 income levels based on a projection of the 1992–93 survey of personal incomes and other survey data in line with assumptions in the "Financial Statement and Budget Report 1995–96" are given in the table. The estimates do not take account of certain tax reliefs for which detailed distributional information is not available, including personal equity plans, tax-exempt special savings accounts, profit-related pay and national savings.

Mr. Robin Squire

My right hon. Friend has decided to invite expressions of interest for a contract to administer the teachers' superannuation scheme.

The report that we commissioned from the consultants KPMG concluded that a contract with a private sector company would offer the prospect of substantial savings for the taxpayer. We owe it to the taxpayer to find out whether such savings are indeed available. Inviting expressions of interest for a contract will help to establish this. We shall let a contract only if it would provide better value for money than keeping the administration of the teachers' superannuation scheme in the public sector. We expect that any contract would start in the latter part of 1996.

The contract would require a standard of service and performance that was at least as high as that which the Teachers Pensions Agency would provide. We would monitor the contractor's performance to ensure that he met those standards. A contractor would not be allowed to use data on teachers for purposes other than administering the scheme.

Any contract would concern only the administration of the scheme. Whether or not the administration is contractorised, the scheme itself will stay in the public sector, on its current statutory basis; my right hon. Friend will remain responsible to Parliament for the scheme; and officials in the Department for Education will be responsible for advising Ministers on policy on teachers' pensions. Letting a contract would not affect the size or safety of teachers' pensions in any way.

The Government are absolutely committed to ensuring that the scheme continues to operate smoothly and without interruption. Any contractor would therefore have to be a well-established company with a proven track record and a reputation for sound relations between staff and management. The crucial importance of continuity would give a natural advantage to potential contractors who proposed to continue to operate from the TPA's current site in Darlington.

We are advised that DFE staff who transferred to a new employer would have the protection offered by the Transfer of Undertakings (Protection of Employment) Regulations 1981. If we transferred the administration of the scheme to the private sector, the contracts of employment of those civil servants employed on the work concerned immediately before the transfer would therefore automatically transfer to the contractor.

We are grateful to all those who submitted comments during recent consultations on the TPA's future. I have placed a summary of those comments—and the Government's responses to them—in the Library. The comments showed a widespread view that the TPA provides a good service to teachers. That reflects credit on the staff of the TPA and on its chief executive, Denyse Metcalfe. We now want to build on the TPA's success. We believe that the best way to do so is to invite

School catering services
£000
1987–88 to 1993–94 1987–88 1988–89 1989–90 1990–91 1991–92 1992–93 1993–94 Net expenditure Total
Berkshire n/a n/a 1,825 1,145 1,522 1,938 2,281 9,614
Lincolnshire 2,002 1,935 1,971 1,982 785 914 875 11,389
Hereford and Worcester 1,645 1,383 1,393 1,372 1,772 1,886 1,809 12,178
Dorset 1,570 1,553 1,624 1,322 1,599 1,998 1,873 12,451
Buckinghamshire 2,118 1,577 2,109 1,519 1,611 1,980 1,659 13,477
Gloucestershire 2,715 2,366 2,835 2,758 2,790 1,959 1,586 17,925
Somerset 4,122 3,038 3,082 3,117 2,311 1,706 1,775 20,084
Cornwall 2,679 2,394 2,312 2,759 3,269 3,394 2,751 20,466
Shropshire 3,899 2,670 3,080 1,881 2,501 3,071 2,643 20,677
West Sussex 2,857 2,427 2,491 2,345 2,993 3,355 3,720 21,126
Suffolk 4,641 2,702 n/a 430 3,624 6,773 2,307 21,412
Northamptonshire 5,575 2,553 3,903 3,535 1,715 2,156 1,883 22,248
Wiltshire 3,210 3,090 3,583 2,985 2,779 2,862 3,039 22,487
Oxfordshire 2,926 2,893 2,445 2,933 2,978 3,303 4,182 22,591
Warwickshire 3,969 3,929 3,284 3,057 3,489 3,722 3,429 25,816
Northumberland 3,786 3,443 3,552 3,513 3,906 3,776 3,150 26,055
Cumbria 4,388 3,544 3,148 3,960 3,826 2,837 3,505 26,117
Cambridgeshire 3,125 2,875 2,679 3,833 3,935 4,707 4,448 26,507
North Yorkshire 6,145 2,884 4,538 3,385 3,201 3,376 3,667 28,123
Bedfordshire 2,995 3,274 3,918 3,795 4,001 5,184 4,786 28,855
Surrey 6,046 2,508 2,689 3,610 4,400 5,695 3,709 29,593
East Sussex 3,837 3,803 4,464 3,964 5,120 5,950 3,975 32,027
Norfolk 3,655 3,463 3,072 3,917 4,887 6,623 6,169 32,712
Kent 6,281 4,968 6,327 3,302 8,049 5,323 6,055 41,228
Cheshire 8,208 7,356 6,065 4,279 5,079 5,685 5,539 43,117
Devon 6,935 6,766 7,548 4,832 5,537 6,466 6,539 45,534
Hertfordshire 5,746 4,405 4,561 6,319 9,508 9,243 5,396 46,097
Staffordshire 7,154 6,735 4,887 5,211 7,232 7,294 7,526 46,973
Leicestershire 9,156 5,749 5,561 7,041 7,541 6,707 6,633 49,312
Durham 7,458 6,416 7,390 7,331 8,453 9,866 2,158 49,985
Essex 12,462 8,315 6,579 5,366 5,898 6,605 6,235 52,375
Hampshire 6,040 5,719 6,779 7,931 10.333 10,745 11,590 60,054
Nottinghamshire 12,821 12,382 9,960 7,518 n/a 12,045 11,593 67,249
Cleveland 10,073 7,948 8,827 10,158 10,910 10,914 10,258 69,995
Avon 8,789 8,066 7,834 11,484 11,328 11,878 10,599 70,879
Humberside 12,321 9,750 9,396 11,580 14,693 14,992 17,121 90,773
Lancashire 13,987 11,710 12,795 11,266 13,424 14,830 15,074 94,009
Derbyshire 15,723 16,975 14,111 15,336 18,679 19,381 13,908 115,023

n/a not available

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