§ Mr. OlnerTo ask the Chancellor of the Exchequer if he will estimate the net present value of savings made from reduced expenditure on tax relief paid on contributions made to appropriate personal pensions in(a) 2025, (b) 2030, (c) 2040 and (d) 2050, if (i) all and (ii) half of those earning under £10,000 per annum who are currently opted out of the state earnings-related pension scheme into APPs were to rejoin SERPS. [15591]
708W
§ Mr. Jack[holding answer 14 February 1997]: The yield from reduced expenditure on tax relief for minimum contributions from the national insurance fund to appropriate personal pensions is tentatively estimated at about £10 million for 2025–26 and 2030–31, and negligible by 2040–41, if all holders of APPs with earnings of under £10,000 per annum were to rejoin SERPS, and about half these amounts if half of those were to rejoin SERPS. The figures are at 1996–97 prices and have been discounted.
The costing assumes that these APP holders in 1996–97 would otherwise continue as APP holders over the projected period. In addition, they are assumed to have the same earnings in these future years in real terms as they did in the base year.