HC Deb 30 November 1998 vol 321 cc100-1W
Mr. Rendel

To ask the Secretary of State for Social Security what savings the Government expects as a result of the transfer of the SERPS element of the widow's pension to payment under the widowed parent's allowance. [61457]

Angela Eagle

Under our proposals, there would be no transfer of SERPS additional Pension between different categories of widows.

Mr. Bendel

To ask the Secretary of State for Social Security if his Department will provide a breakdown of the savings expected as a result of the changes to widows' benefits. [61456]

Angela Eagle

The information is in the table.

Breakdown of the estimated costs and savings associated with the proposed reforms of bereavement benefits
£ million (1998–99 benefit rates)
2001–2 2002–3 2003–4 2020
Increase widow's payment to £2,000 and extend to men 70 70 70 50
Introduce Bereavement Allowance and extend to men * -50 -100 -600
Extend Widowed Parent's Allowance to new widowers * 10 20 50
Extend Widowed Parent's Allowance to existing widowers 50 40 40 0
£10 disregard of Widowed Parent's Allowance in means-tested benefits 10 10 10 **
Premium for older widows in means-tested benefits * 10 10 0
Total 140 100 50 -500

Notes:

  1. 1. +cost; - saving
  2. 2. 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.
  3. 3. The underlying contributory benefit effects have been provided by the Government Actuary's Department.
  4. 4. Estimates for the first three years are rounded to the nearest £10 million. * denotes negligible i.e. less than +/- £5 million.
  5. 5. Estimates for 2020 provide broad orders of magnitude and are rounded to the nearest £50 million. ** denotes less than £25 million.
  6. 6. Total may not sum due to rounding.

Mr. Duncan Smith

To ask the Secretary of State for Social Security what would be the total payment in widow's benefits to a woman, without dependent children, widowed at the age of 45 years who claims the benefits until she becomes eligible for the state pension, including the widow's payment, the graduated widow's pension between 45 and 54 years and the full widow's pension. [61691]

Angela Eagle

A 45 year old woman without children who was widowed in 1998–99 would receive a one-off Widow's Payment of £1,000 and an age-related Widow's Pension of £19.41 a week (1998–99 benefit rates) for 18 years until she reached State pension age in 2016. The total would be £19,200. In addition, she may be entitled to SERPS which would be based on her late husband's NI contribution record.

Notes:

  1. 1. The estimate assumes that the contribution record of the husband meets the relevant contribution conditions, and that the woman continues to meet the qualifying conditions for receipt of Widow's Pension.
  2. 2. The estimate is in 1998–99 benefit rates and is rounded to the nearest £100.
  3. 3. Between 2010 and 2020 female State pension age will be raised until it is in line with male State pension age.