§ Mr. WebbTo ask the Secretary of State for Social Security if he will list the categories of people who can be credited entitlement to(a) the basic state pension, (b) SERPS and (c) the proposed second state pension; and if he will make a statement on the reason for the differences in the crediting arrangements for each. [81991]
§ Mr. TimmsThe categories of people who can be credited with National Insurance contributions to assist them to satisfy the second contribution condition for basic State pension are
Young people for the tax years containing their 16th, 17th and 18th birthdays;Men for the tax years containing their 60th birthday and the four succeeding years, provided they have no liability for Class 1 or 2 National Insurance contributions;Persons undergoing courses of full time approved training;Invalid Care Allowance recipients;Family Credit recipients;Disability Working Allowance recipients;Persons who are either in receipt of Jobseeker's Allowance or unemployed and satisfy specified conditions which include that they are available for and actively seeking paid employment;Persons incapable of work through illness or disability;Statutory Maternity Pay recipients.There are no arrangements for crediting people with entitlement to SERPS.
It is proposed that carers and long-term disabled people with broken work records will be credited with entitlement to the State Second Pension. In addition, those earning between the Lower Earnings Level and £9,000 will receive a boost to their State Second Pension by being treated as if they had had earnings at that level.
The main reason for crediting entitlement to the basic pension is the recognition that it would be unreasonable to allow the future entitlement of people who are involuntarily out of work through unemployment or sickness or whose earning power in work is seriously depleted by these contingencies, to be jeopardised by deficiencies in their contribution records.
SERPS is purely a contributory earnings-related second pension scheme which does not attract any form of credits. It gives insufficient help to those who need it most. This is why we are proposing the new State Second Pension to replace SERPS.