HC Deb 14 April 1999 vol 329 cc279-80W
Mr. Cousins

To ask the Secretary of State for Social Security if he will estimate the size and cost of the rebates required to implement the Partnership for Pensions proposals. [80509]

Mr. Timms

The proposals for Stakeholder Pensions and the State Second Pension will impact on the National Insurance rebate payable to those contracted-out of the State scheme. For Stakeholder Pensions, we will first need to look at the charging structure before determining the appropriate levels of National Insurance rebates. We expect to consult with the Government Actuary's Department later in the year and would aim to lay any Rebate Orders before 6 April 2000, a year before the planned introduction of Stakeholder Pensions in April 2001.

The scheduled introduction of the State Second Pension in April 2002 will coincide with the introduction of any new rebates arising from the next full review that will take place during the 2000–01 tax year. The review will include full consultation, and will set out the level of rebate considered appropriate to compensate for the new State benefits forgone.

Mr. Cousins

To ask the Secretary of State for Social Security (1) if he plans to require providers of stakeholder pensions to have a duty to offer advice with utmost good faith to potential customers; [80507]

(2) if he plans to require his Department (a) to offer advice, (b) to pay for independent advice and (c) to provide a channel to authorised independent advice, on the switch between the state second pension and the stakeholder pension proposed in his Partnership for Pensions. [80508]

Mr. Timms

The arrangements for the provision of information and advice to those considering joining stakeholder pension schemes are subject to further consultation. Further details will be set out in due course.

Mr. Webb

To ask the Secretary of State for Social Security if he will estimate the proportion of (i) pensioner couples, (ii) single male pensioners, (iii) single female pensioners and (iv) pensioners in total aged(a) 65 to 69, (b) 70 to 74, (c) 75 to 79 and (d) 80 years or above who are in receipt of income from an occupational pension; and if he will list for each group the mean and median amounts received. [80422]

Mr. Timms

The information is in the tables.

The methodology used is consistent with The Pensioners' Incomes Series 1996–97. Estimates of the proportions in receipt of occupational pension income should be regarded as provisional. This is because they are based partly on data extrapolated from the Government Actuary's Department Surveys of Occupational Pensions, which are published approximately every five years, with the most recent surveys relating to 1991. Estimates are likely to be revised when the latest survey is published.

Estimates of mean and median amounts can be regarded as final.

Proportion of pensioners in receipt of income from an occupational pension
Percentage
Age band
65 to 69 70 to 74 75 to 79 80 or above
Pensioner couples 77 78 75 65
Single male pensioners 54 58 61 56
Single female pensioners 69 65 61 51
All pensioner units 70 70 66 55

Mean amount of occupational pension income for those in receipt—July 1996 prices
£ per week
Age band
65 to 69 70 to 74 75 to 79 80 or above
Pensioner couples 132 112 98 87
Single male pensioners 88 96 63 63
Single female pensioners 63 58 51 44
All pensioner units 109 92 74 61

Median amount of occupational pension income for those in receipt—July 1996 prices
£per week
Age band
65 to 69 70 to 74 75 to 79 80 or above
Pensioner couples 87 67 52 50
Single male pensioners 59 55 37 39
Single female pensioners 37 34 29 27
All pensioner units 66 52 39 32

Notes:

  1. 1. Estimates of the proportion of pensioner units in receipt of occupational pension income are based upon data from the Family Resources Survey 1996–97, controlled to a number of individual recipients which is extrapolated from the Surveys of Occupational Pensions of the Government Actuary's Department.
  2. 2. Estimates of the proportions with occupational pension income should be treated as provisional.
  3. 3. Pensioner units are defined as single people above State pension age (60 and over for women, 65 and over for men) and couples (married or cohabiting) where the man is over State pension age.
  4. 4. Pensioner couples have been allocated to age bands according to the age of the man.
  5. 5. The occupational pension income category includes income received by widows on the basis of their late spouse's contributions to an occupational pension scheme.

Sources:

Family Resources Survey 1996–97, Government Actuary's Department Surveys of Occupational Pensions 1991.