§ Mr. Jim CunninghamTo ask the Secretary of State for Social Security what assessment she has made of the adequacy of the state pension as the sole source of income. [31062]
§ Mr. DenhamThe key objective of our review of pensions is to ensure that pensioners should have an adequate income in retirement; that they should share fairly in rising national prosperity; and that public finances should be both sustainable and affordable.
For most people, security in retirement will come from a combination of the basic State Pension and a second pension. However, for people receiving only the basic pension it is likely that they would be entitled to Income Support on top of their basic pension.
§ Mr. Jim CunninghamTo ask the Secretary of State for Social Security if she will make it her Department's policy to provide advice for those planning their pensions. [31065]
§ Mr. DenhamOur aim is to provide people with the clear and concise information they need to help them make informed decisions about pensions and to raise awareness of the importance of pensions planning throughout their working lives.
The Department has reviewed the information and publicity material that it produces for consumers with the objective of making sure that it sets out clearly how pensions work, and what questions they should ask before deciding what is the best option for them. We will be issuing new publicity material in the Spring.
Developing greater financial literacy and economic awareness is crucial to give everybody, men and women, young and old, the confidence to make informed choices and take control of their financial future. The pensions review is addressing this challenge through our Pensions Education Working Group.
§ Mr. Jim CunninghamTo ask the Secretary of State for Social Security if she will take steps to remove disadvantages in the pensions structure for women changing jobs. [31063]
299W
§ Mr. DenhamOne of the major challenges facing the Government's Pensions Review is to narrow the pensions gap between women and men to give women more security in retirement. Many pensions are simply not flexible enough to cope with women's working patterns and the fact that they are more likely to have caring responsibilities. We are therefore considering many of the obstacles that currently prevent women from developing good pension rights.
We are committed to introducing pension sharing for divorcing couples from April 2000, and our proposals for Stakeholder Pensions and a Citizenship Pension will be of particular benefit to women. Stakeholder Pension schemes are a central part of our plans to modernise the pensions system and the Government recognise that there is a need to develop new, value-for-money second pension schemes that do not penalise those who change jobs frequently, or who take breaks from work, particularly women.
§ Mrs. EwingTo ask the Secretary of State for Social Security (1) if she will make it her policy to reform current bankruptcy law to allow the self-employed and employees who are not members of an occupational pension scheme to receive the same exemption upon becoming insolvent as is presently enjoyed by persons who, as employees, were members of an occupational pension scheme; and if she will make a statement; [31025]
(2) if she will make a statement on the implications of the decision in the Landau case for the differing treatment upon insolvency of (a) the self-employed, (b) employees who are not members of an occupational pension fund and (c) employees with occupational pensions, in the event of their becoming insolvent. [31026]
§ Mr. DenhamThe issue of pensions and bankruptcy is currently being considered as part of our wide ranging Pensions Review.
§ Mr. Jim CunninghamTo ask the Secretary of State for Social Security what proposals she has to make allowance for the consequence of divorce in pension provision. [31064]
§ Mr. DenhamCourts are required to take into account pensions in reaching a divorce settlement. Provision exists to allow a woman who divorces before State pension age to substitute her former husband's National Insurance contributions record for her own record for specified periods, and to receive a Basic Retirement Pension on this basis when she reaches State pension age. The earmarking provisions introduced by the Pensions Act 1995 enable courts to require a private pension scheme to make payments (once the pension is in payment) directly to a former spouse on behalf of the scheme member.
Our Manifesto committed us to introducing pension sharing for divorcing couples and we aim to do so from April 2000. We are working through the detailed issues and implementation arrangements with representatives of the pensions industry, family lawyers and others, and plan to publish draft legislation for consultation during this Parliamentary session. Pension sharing will allow fairer settlements on assets on divorce and is an important step towards meeting the Government's objective of closing the pensions gap between women and men in retirement.