HC Deb 18 November 1998 vol 319 cc623-6W
Mr. Webb

To ask the Secretary of State for Social Security if he will estimate the cost of raising the upper capital threshold for pensioner claimants of income support to(a) £10,000, (b) £15,000 and (c) £20,000. [58969]

Mr. Denham

[holding answer 9 November 1998]: The estimated costs are (a) £5 million, (b) £20 million, (c) £20 million.

Notes:

  1. 1. These figures are rounded to the nearest £5 million and are based upon the Department's Policy Simulation Model of income-related benefits. This model draws data from the 1995–6 Family Resources Survey, uprated to 1999–2000 levels, and calibrates results to forecast benefit caseloads. This calibration is consistent with the Department's Comprehensive Spending Review forecasts.
  2. 2. For capital costings, estimates are further adjusted using May 1997 administrative data results in order to bring them into line with known reported capital on administrative data. In the absence of any other information, the same adjustments have been applied to estimated existing gainers and floaters-on. The caseloads involved in these costings are very small and the figures are thus subject to sampling error. Whilst we would expect variant (c) to cost more than variant (b) this difference is lost in the rounding that is essential when dealing with such small sample numbers. Estimates from household surveys based on reported capital holdings are subject to low levels of response and high levels of imputation. Consequently they should be interpreted not as precise point estimates, but rather as indicative of broad magnitudes.

Mr. Webb

To ask the Secretary of State for Social Security if, for the purposes of calculating SERPS entitlements, payments of the working families tax credit will be treated in the same way as family credit payments. [58971]

Mr. Denham

All matters relating to Pensions are being considered as part of the Pensions Review.

Mr. Webb

To ask the Secretary of State for Social Security, pursuant to his answer of 4 November 1998, to the hon. Member for Newbury (Mr. Rendel),Official Report, columns 603-05, how many pensioners are currently receiving payments of (a) basic pension, (b) SERPS and (c) either basic pension or SERPS, where the Department cannot be certain that the correct amount is in payment. [59101]

Mr. Timms

It is estimated that potentially some 30,000 basic pensions could be underpaid and some 163,000 SERPS could be underpaid. It is not possible to estimate how many people will be receiving underpayments of both basic pension and SERPS. In addition, it is possible that some of the estimated 6,000 emergency awards paid without the availability of the NIRS contributions record could be overpaid.

Mr. Flynn

To ask the Secretary of State for Social Security what would be the(a) gross and (b) net cost for 1999–2000, of increasing the basic retirement pension and linked benefits received by people over pension age to £75 for a single person in April 1999, (i) with and (ii) without a similar percentage increase for couples; and what increase in contribution rates would be needed to cover the gross and net costs respectively. [59757]

Mr. Denham

The information is not available in the form requested. Such information as is available is in the tables.

Benefit costs of increasing Retirement Pension (RP) in 1999–2000
£ billion
(i) (ii)
Gross cost 4.0 3.5
Means-tested benefit offset 1.0 *
Net costs 3.0 *

Notes:

  1. 1. Gross costs have been estimated by the Government Actuary's Department.
  2. 2. Means-tested benefit offsets are based on the 1995–96 Family Resources Survey uprated to 1999–2000 benefit and earnings levels.
  3. 3. Estimates are rounded to the nearest £0.1 billion.
  4. 4. '*' A means-tested benefit offset is not available for this part. Offsets are calculated using the Family Resources Survey which does not differentiate between married women who receive a Category A pension and those who receive a Category BL pension.
  5. 5. Where both members of a couple are in receipt of a full Category A pension they have each been awarded a basic state pension of £75 per week. For cases in receipt of less than full-rate Category A, their award of Category A is pro rated according to the percentage of the full pension received. However, it is not possible to identify the Category A element of a pension received by Category ABL cases. Thus the cost of increasing Category A pension for these cases has not been taken into account in part (ii).
  6. 6. Components may not sum to totals due to rounding.

National Insurance Contributions (NICs) rates necessary to cover the gross costs
percentage
Current rates (i) (ii)
Employee NICs rate 10 10.8 10.8
Employer NICs rate 12.2 12.8 12.7

Notes:

  1. 1. Changes in contribution rates have been estimated by the Government Actuary's Department.
  2. 2. The estimates assume that the Lower Earnings Limit is raised to the level of the Category A pension, with consequent changes in the Upper Earnings Limit, Upper Profits Limit, Class 2 and Class 3 contribution rates. The extra cost of these changes has been added to the cost of increasing RP rates, when calculating the necessary changes in contribution rates.

Mr. Skinner

To ask the Secretary of State for Social Security when he next expects to meet pensioners' organisations to discuss the uprating of pensions and associated issues; and if he will make a statement. [59524]

Mr. Denham

As part of the pensions review, Ministers have met representatives of pensioners' organisations regularly to discuss a broad range of issues, including uprating. We expect meetings with pensioners organisations to continue both before and after the publication of the Green Paper.

Mr. Jim Cunningham

To ask the Secretary of State for Social Security when he expects the pensions review to report its findings. [59469]

Mr. Denham

As set out in the Green Paper "New Ambitions for our Country: A New Contract for Welfare" (Cm 3805), we intend to publish a Green Paper on pensions later this year.