HC Deb 07 December 1998 vol 322 cc6-8W
Mr. Rendel

To ask the Secretary of State for Social Security if the SERPS element previously paid in the widow's pension will in future be paid under the widowed parent's allowance. [62615]

Angela Eagle

Under our proposals for new bereavement benefits, those widows who qualify for Widow's Pension at the point of change will continue to receive benefit including any SERPS whilst they satisfy the entitlement conditions. Widowed parents who become entitled to the Widowed Parent's Allowance will receive any SERPS entitlement based on their late spouse's payment of earnings-related National Insurance contributions since 1978 with the basic element of Widowed Parent's Allowance.

Mr. Rendel

To ask the Secretary of State for Social Security what(a) amount and (b) percentage of the total of the widow's pension was previously paid as SERPS entitlement. [62616]

Angela Eagle

The average weekly amount of SERPS paid to Widow's Pension recipients in Great Britain at 31 March 1998 was £14.36, which represents 24 per cent. of their average total weekly entitlement.

Source:

5 per cent. sample from the Pensions Strategy Computer System.

Mr. Rendel

To ask the Secretary of State for Social Security what element of the widowed parent's allowance will be paid as SERPS entitlement. [62617]

Angela Eagle

As with the current Widowed Mother's Allowance, SERPS entitlement based on the late spouse's payment of earnings-related National Insurance contributions since 1978 will be paid with the basic element of Widowed Parent's Allowance.

Mr. Rendel

To ask the Secretary of State for Social Security what estimate he has made of the cost of introducing the new bereavement allowance(a) for widows and (b) for widowers for (i) 2001–2, (ii) 2002–3, (iii) 2003–4 and (iv) 2020, excluding savings resulting from the abolition of the widow's pension. [62592]

Angela Eagle

The information is in the table.

Estimated increased expenditure associated with the introduction

of the bereavement allowance for (a) widows and (b) widowers,

excluding savings resulting from the abolition of the

widow's pension

£ million 1998–99 benefit rates
Bereavement allowance for widows Bereavemen allowance for widowers
2001–02 20 10
2003–04 30 10
Estimated increased expenditure associated with the introduction

of the bereavement allowance for (a) widows and (b) widowers,

excluding savings resulting from the abolition of the

widow's pension

£ million 1998–99 benefit rates
Bereavement allowance for widows Bereavement allowance for widowers
2003–04 30 10
2020 50 1
1 Denotes less than £25 million

Notes:

1. Estimates are presented net of means-tested benefit offsets, in line with those in "A new contract for welfare: support in bereavement". Means-tested benefit offsets were estimated using the 1995–96 Family Resources Survey and the Income Support Quarterly Statistical Enquiries. They assume a constant offset ratio in order to provide illustrative estimates for 2020.

2. The underlying contributory benefit effects have been provided by the Government Actuary's Department.

3. Estimates for the first three years are rounded to the nearest £10 million.

4. Estimates for 2020 provide broad orders of magnitude and are rounded to the nearest £50 million.

Mr. Rendel

To ask the Secretary of State for Social Security if he will estimate how many widows and widowers will be eligible for means tested benefits following withdrawal of the bereavement allowance after six months. [61459]

Angela Eagle

[holding answer 30 November 1998]: The information is in the table.

Estimates of the number of widows and widowers who would start

to receive or continue to receive means-tested benefits once their

bereavement allowence has been exhausted

Benefit 2001–02 2002–03 2003–04
Income Support less than 5,000 10,000 20,000
Housing Benefit less than 5,000 less than 5,000 10,000
Council Tax Benefit less than 5,000 10,000 10,000

Notes:

1. Estimates for later years include the effect of the build up through time of the number of ex-recipients of Bereavement Allowance. It is not possible to be more exact.

2. The estimates presented above are broad orders of magnitude. They are rounded to the nearest 10,000 but are not necessarily accurate to that degree.

3. Estimates assume that a constant proportion of those affected by the proposed changes to Bereavement Benefits move on or off each of the means-tested benefits.

4. Estimates use information from the 1995–96 Family Resources Survey, the Income Support Quarterly Statistical Enquiry and forecasts from the Government Actuary's Department concerning the number of men and women affected by the proposed changes.

5. Some widows and widowers will receive more than one of the means-tested benefits. However, the estimates across means-tested benefits cannot be summed to provide an estimate of the total number of people affected by the changes.

Mr. Rendel

To ask the Secretary of State for Social Security how many widows and widowers his Department estimates will be entitled to the bereavement allowance; and how many will have the benefit withdrawn after six months when the allowance is introduced in 2001. [61458]

Angela Eagle

[holding answer 30 November 1998]: In the first full year following implementation, it is estimated that the average number of widows and widowers in receipt of bereavement benefits, at any one time, will be 50,000. Of these 20,000 will be entitled to the Bereavement Allowance which will end after 6 months for all.

Notes:

1. Numbers of widows and widowers have been supplied by the Government Actuary's Department.

2. Numbers are rounded to the nearest 10,000.

3. These estimates are intended to represent broad orders of magnitude.

Mr. Rendel

To ask the Secretary of State for Social Security what estimate he has made of the savings from the abolition of the widow's pension in(a) 2001–2, (b) 2002–3, (c) 2003–4 and (d) 2020, excluding the introduction of the bereavement allowance. [62591]

Angela Eagle

The information is in the table.

Estimated savings associated with the abolition of the widow's pension excluding the introduction of the bereavement allowance
£ million 1998–99 benefit rates
Abolition of widow's pension
2001–02 30
2002–03 90
2003–04 140
2020 700

Notes:

1. Estimates are presented net of means-tested benefit offsets, in line with those in "A new contract for welfare: support in bereavement". Means-tested benefit offsets were estimated using the 1995–96 Family Resources Survey and the Income Support Quarterly Statistical Enquiries. They assume a constant offset ratio in order to provide illustrative estimates for 2020.

2. The underlying contributory benefit effects have been provided by the Government Actuary's Department.

3. Estimates for the first three years are rounded to the nearest £10 million.

4. Estimates for 2020 provide broad orders of magnitude and are rounded to the nearest £50 million.

5. The savings quoted above refer to only one element of the recently announced package of reforms to Bereavement benefits, which also include extending benefits to widowers and doubling the lump sum Bereavement Payment. The net savings in 2020 from the whole package amounts to £500 million.