Pensions (Hansard, 28 July 1997)

§ 19. Mr. Woodward
To ask the Secretary of State for Social Security how many people contracted out of the state earnings-related pension scheme in 1996–97. [9046]

§ Mr. Denham
Our long-term objective is to ensure that everyone has the opportunity to build up adequate pension to guarantee security in retirement. We will encourage secure, flexible and value-for-money second pensions.
99W
At the end of April 1997, some 5.6 million people were contracted out of SERPS through an appropriate personal pension scheme.
In 1994–95, there were 8.2 million people contracted out of SERPS through occupational pension schemes. This is the latest year for which this information is available.

§ 33. Mr. Winnick
To ask the Secretary of State for Social Security what recent representations she has received about the state pension. [9061]

§ Mr. Denham
We have now announced the terms of a wide-ranging review. It will involve extensive consultation with interested parties, including employers, employees, the pensions industry and today's pensioners.

§ Mr. Flynn
To ask the Secretary of State for Social Security if she will restore the link between the basic pension and average earnings pending the outcome of the pensions review. [10113]

§ Mr. Denham
[holding answer 24 July 1997]: The review of the central areas of insecurity for elderly people announced on 17 July by my right hon. Friend the Secretary of State will include all aspects of the basic state pension and its value and second pensions including the state earnings-related pension scheme. As part of our consultative approach, the National Pensioners Convention will take a specific role in the review to ensure that the views of today's pensioners are heard. The review will enable the Government to publish an initial framework for change in the first part of 1998. There will then be a period of further consultation before firm proposals are developed.

§ Mr. Grieve
To ask the Secretary of State for Social Security how much the equalisation of the state pension at age 65 years under the Pensions Act 1995 will save per annum by 2025; and how much it will have saved in total by 2025. [10842]

§ Mr. Denham
The savings in national insurance fund benefit expenditure arising from the equalisation of state pension age under the Pensions Act 1995 are estimated to be approximately £6 billion per annum by 2025.
The total saving in national insurance fund benefit expenditure between 2010 and 2025 arising from the equalisation of state pension age under the Pensions Act 1995 is estimated to be approximately £60 billion.
Notes:
1. The estimates are based on the "Pensions Bill 1994—Report by the Government Actuary's Department on the Financial provisions of the Bill of the National Insurance Fund", Cm 2714, and are in 1997–98 prices.
2. Estimates assume price uprating of benefits and earning limits.
3. Savings per annum are rounded to the nearest £1 billion and total savings for the period 2010 to 2025 are rounded to the nearest £10 billion.
4. The £60 billion is a cumulative, undiscounted sum.