§ Mr. CorbynTo ask the Secretary of State for Social Security what estimate she has made of the number of pension advisers to be recruited by her Department and of their total cost. [51888]
§ Mr. DenhamPlans for taking forward our strategy to help the poorest pensioners on a national basis are currently being developed, and will be informed by the results from the pilot projects and research. Therefore, it is not possible to give an indication of the numbers of personal advisers or their total cost, at this stage.
§ Mr. CorbynTo ask the Secretary of State for Social Security, pursuant to her oral statement of 17 July 1998,Official Report, columns 703–06, what estimate she has made of the loss of council tax rebate and housing benefit for persons who receive the minimum income supplement; and if she will make a statement. [51883]
§ Mr. Keith BradleyThere will be no loss of Council Tax Benefit or Housing Benefit resulting from the measures announced on 17 July 1998.
From next April, Income Support rates will be increased to give the poorest pensioners a guaranteed minimum income of £75 per week for a single person. Couples, and older pensioners, will receive more. The full details are in the table.
Pensioners currently entitled to Income Support, and those who newly qualify as a result of the increases and the implementation of our national programme to find 724W those pensioners who are entitled but who do not claim, will normally qualify, as now, for full eligible Housing Benefit and Council Tax Benefit.
New Income Support rates from April 1999 £ Age Single pensioners now Single pensioners from April 1999 Couples now Couples from April 1999 60–74 70.45 75.00 109.35 116.60 75–79 72.70 77.30 112.55 119.85 80+1 77.55 82.25 117.90 125.30 1Also paid to younger pensioners with disabilities
§ Mr. CorbynTo ask the Secretary of State for Social Security what estimate she has made of the current number of pensioners who(a) receive council tax benefit and housing benefit and (b) are eligible for them but do not claim. [51891]
§ Mr. DenhamThe information is set out in the table.
The latest available figures for pensioners entitled to, but not receiving, Housing Benefit or Council Tax Benefit are for 1995–96. For recipients, estimates have been provided for the same period for comparative purposes.
Number of pensioner recipients and range of entitled-non recipients for Council Tax Benefit and Housing Benefit Recipients 1995–96 Entitled-Non Recipients 1995–96 Council Tax Benefit 2,770,000 Between 950,000 and 1,420,000 Housing Benefit 1,940,000 Between 230,000 and 320,000 Sources:
- 1. For Housing Benefit and Council Tax Benefit recipients 1995–1996—The four quarterly 100 per cent. caseload counts from May 1995, August 1995, November 1995 and February 1996, and May 1995 1 per cent. caseload count
- 2. For those entitled to but not receiving their Housing Benefit or Council Tax Benefit—The 1995–1996 Family Resources Survey
§ Mr. CorbynTo ask the Secretary of State for Social Security what estimate her Department has made of the number of members of the state earnings related pension scheme in each of the last 10 years. [51887]
§ Mr. DenhamThe information is not available in the format requested. Such information as is available is set out in the table.
725W
Number of people who have contributed towards the State Earnings Related Pension Scheme from 1986–87 to 1995–96 for Great Britain 000s Tax year Number of members 1986–87 10,116 1987–88 7,483 1988–89 7,493 1989–90 7,206 1990–91 7,161 1991–92 6,471 1992–93 6,327
Number of people who have contributed towards the State Earnings Related Pension Scheme from 1986–87 to 1995–96 for Great Britain 000s Tax year Number of members 1993–94 6,555 1994–95 7,115 1995–96 7,496 Notes:
- 1. Figures are for Great Britain, and are rounded to the nearest thousand
- 2. When a person reaches State pension age the amount of entitlement to the State Additional Pension is calculated. The formula used for this calculation means there are people with contracted-out employments, an Appropriate Personal Pension (APP) or who only pay Class 2 or Class 3 National Insurance contributions (NICs) who may receive a small amount of State Additional Pension in respect of earnings during these years. The figures quoted exclude any such cases. People who are not contracted-out, who earn over the annual lower earnings limit have been categorised as members of SERPS
- 3. Married women who have retained the right to pay reduced rate NICs are not entitled to accrue SERPS while the reduced rate authority is retained
- 4. The figures show a reduction in 1987–88 mainly due to the introduction of APPs
Source:
"Second Tier Pension Provision 1995–96", (Table 4.0, Volume 2) published February 1998. The source of data for this publication is the Lifetime Labour Market Database (LLMDB), a 1 per cent. sample of the National Insurance Recording System taken at February 1997. 1995–96 is the latest tax year for which figures are available
§ Mr. CorbynTo ask the Secretary of State for Social Security what estimate she has made of(a) the expenditure costs of the state earnings related pension scheme per member and (b) the comparative costs for members of private pension schemes and occupational schemes. [51889]
§ Mr. DenhamInformation on the administration costs of State Earnings Related Pension Scheme (SERPS) per member is not available. The administration cost to the National Insurance Fund for awarding and paying State Retirement Pension, including SERPS, and collecting and maintaining records of National Insurance contributions was some £622 million in 1996–971.
It is difficult to draw meaningful comparisons between the costs of running SERPS, occupational pension schemes and personal pensions. Administration costs for funded pensions include the costs of fund management as well as general administration. Occupational pensions benefit from economies of scale and may be able to reduce costs by using the employer's payroll and data systems. Personal pensions on the other hand are individual arrangements, and charges will include margins for advertising, selling and profit.
A survey of occupational pensions scheme expenses recently published by the Government Actuary's Department2 shows very wide variations in costs, ranging from 2 per cent. to 44 per cent. of scheme contributions, with an average of 8 per cent. of annual contributions from members and employers.
726WCharges for personal pensions are measured differently and generally presented as a percentage of the final fund including investment return. They also vary widely. The effect of charges on an individual's accrued fund will depend on factors such as the amount of contributions made and whether the policy runs to retirement or is made paid-up after only a few years. A report3 in 1997 did, however come up with some broad conclusions. With average charges and no commission, between 15–20 per cent. of the moneys accumulated in a personal pension can be absorbed by charges. With commission, charges can rise to 20–25 per cent. of the accumulated fund. However if contributions are made for only a few years and then stop, charges can rise to absorb 40–50 per cent. of the accumulated fund.
- 1Source Department Report 1998–99, CM3913
- 2GAD Survey of Expenses of Occupational Pension Schemes, published June 1998
- 3"Pensions—A Long Term Strategy" published by the Association of British Insurers June 1997.