HC Deb 03 April 1996 vol 275 c256W
Mr. Jim Cunningham

To ask the Chancellor of the Exchequer (1) what is the total sum contributed by employers to occupational pensions on behalf of employees in the last year for which figures are available; [23978]

(2) what estimate he has made of the number of (a) higher rate taxpayers, (b) basic rate taxpayers and (c) lower rate taxpayers who benefit from employers' contributions to occupational pension schemes; [23976]

(3) how much of the tax relief on employers' occupational pension contributions is attributable to (a) higher rate taxpayers, (b) basic rate taxpayers and (c) lower rate taxpayers; [23979]

(4) what is the estimated average rate of tax relief on employers' contributions to occupational pension schemes. [23977]

Mr. Jack

The latest estimate, which is still provisional, is that total employers' contributions to occupational pensions 1994–95 were about £10,300 million. Information is not available to enable employers' contributions to be related to particular individuals. The revenue cost of not treating employers' contributions as a taxable benefit in kind of the employees is based on an average marginal tax rate of about 28 per cent., giving a cost of tax relief of around £2,900 million. This assumes that the distribution of marginal tax rate is similar to that of employees generally, but it would be misleading to provide the more detailed information requested on the basis of very general assumptions.

Mr. Cunningham

To ask the Chancellor of the Exchequer if he will estimate the number of employees in pensionable employment whose pension entitlement is not at present covered by the earnings ceiling. [23980]

Mr. Jack

The information is not available centrally. Only the trustees of individual occupational schemes would be able to provide this information.