Personal Pensions (Hansard, 20 December 1999)

§ Mr. Willetts
To ask the Chancellor of the Exchequer how much money was received by the Exchequer in each of the financial years 1994–95 to 1998–99 as a result of the reinstatement of public service employees who were mis-sold personal pensions into public service pension schemes. [102796]

§ Mr. Andrew Smith
Public service pension schemes first received receipts in 1996-97 to pay for the reinstatement of employees identified under Phase 1 of the mis-selling review as having been mis-sold personal pensions. Receipts from this source, which are matched by future benefits to pensioners, have been received in all subsequent years but not all of the unfunded schemes financed from the Exchequer have separately identified receipts from this source throughout this period. With the exception of the NHS Pensions Scheme, the profile of Exchequer receipts relating to the main public service pension schemes is estimated as follows:

Year £ million

1994–95 0

1995–96 0

1996–97 1

1997–98 44

1998–99 115

In addition, receipts relating to the NHS Pensions Scheme up to the end of 1998–99 totalled approximately £500 million, of which £227 million was received between August 1998 and March 1999, and the balance between October 1996 and July 1998. A more detailed breakdown of these receipts could be obtained only at disproportionate cost. These figures exclude receipts by public service pension schemes which are not financed by the Exchequer, such as the Local Government Pension Scheme.

§ Mr. Willetts
To ask the Chancellor of the Exchequer, pursuant to his answer of 6 December 1999,Official Report, column 448W, if he will provide a breakdown of receipts in respect of public service employees mis-sold personal pensions being reinstated into public service 435W pension schemes, including the (a) number of employees involved, (b) public sector schemes of which they were members and (c) average payment. [102815]

§ Mr. Andrew Smith
The estimates given in my earlier answer, of receipts of £100 million to 160 million in this financial year and each of the following three financial years, were global estimates as detailed forecasting would not be productive given the uncertainties about the number of cases of mis-selling which Phase 2 of the review will identify, how restitution will be made and how fast cases will be dealt with. Receipts relating to reinstatements, mainly from Phase 1 of the review, in the current financial year are now expected to be approximately £195 million, bringing cumulative receipts up to the end of 1999–2000 to about £850 million. The latest estimate of receipts in the following three years is £100 million to 200 million a year. This is based on an expectation of receipts of about £95 million next year from schemes other than the NHS, with no certainty about the level of receipts thereafter. In addition, it is estimated that the NHS Pensions Scheme will receive about £300 million in respect of Phase 2 cases, based on an expectation that some 50,000 cases will require reinstatement to the NHS Pensions Scheme at an average cost of £6,000 each. The NHS Phase 2 receipts are assumed to be spread evenly over the next three years.

Excess winter mortality by standard region of usual residence, 1988–89 to 1998–99, England, Wales and Northern Ireland

Standard region 1988–89 1989–90 1990–91 1991–92 1992–93 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99¹

North 1,230 3,030 1,980 2,580 1,590 1,990 1,610 2,490 2,620 1,760 2,830

Yorks and Humberside 2,310 4,660 3,650 3,980 2,470 3,120 2,790 4,040 4,550 2,460 4,870

North West 3,530 6,900 5,460 4,650 3,700 2,610 3,400 5,220 5,960 2,550 7,080

East Midlands 1,650 3,540 3,040 3,150 2,180 2,470 2,330 2,930 3,540 2,000 4,200

West Midlands 2,200 4,890 4,050 3,370 2,590 2,410 2,310 4,160 4,530 2,450 4,990

East Anglia 1,180 1,770 1,700 1,200 1,120 1,150 1,180 1,600 2,140 1,070 2,250

South East 6,380 14,470 11,930 10,740 8,360 8,690 9,310 13,240 16,450 7,200 14,730

South West 1,830 5,110 3,910 3,350 2,190 2,590 2,840 4,140 5,060 2,230 4,300

Country

England 20,330 44,370 35,720 33,010 24,190 25,030 25,760 37,810 44,850 21,730 45,240

Wales 920 2,950 2,330 1,990 1,610 1,010 1,650 2,440 2,880 1,290 3,000

Northern Ireland 350 -1,170 900 960 410 640 660 80 230 600 1,180

¹Provisional

Year	£ million
1994–95	0
1995–96	0
1996–97	1
1997–98	44
1998–99	115

Excess winter mortality by standard region of usual residence, 1988–89 to 1998–99, England, Wales and Northern Ireland
Standard region	1988–89	1989–90	1990–91	1991–92	1992–93	1993–94	1994–95	1995–96	1996–97	1997–98	1998–99¹
North	1,230	3,030	1,980	2,580	1,590	1,990	1,610	2,490	2,620	1,760	2,830
Yorks and Humberside	2,310	4,660	3,650	3,980	2,470	3,120	2,790	4,040	4,550	2,460	4,870
North West	3,530	6,900	5,460	4,650	3,700	2,610	3,400	5,220	5,960	2,550	7,080
East Midlands	1,650	3,540	3,040	3,150	2,180	2,470	2,330	2,930	3,540	2,000	4,200
West Midlands	2,200	4,890	4,050	3,370	2,590	2,410	2,310	4,160	4,530	2,450	4,990
East Anglia	1,180	1,770	1,700	1,200	1,120	1,150	1,180	1,600	2,140	1,070	2,250
South East	6,380	14,470	11,930	10,740	8,360	8,690	9,310	13,240	16,450	7,200	14,730
South West	1,830	5,110	3,910	3,350	2,190	2,590	2,840	4,140	5,060	2,230	4,300
Country
England	20,330	44,370	35,720	33,010	24,190	25,030	25,760	37,810	44,850	21,730	45,240
Wales	920	2,950	2,330	1,990	1,610	1,010	1,650	2,440	2,880	1,290	3,000
Northern Ireland	350	-1,170	900	960	410	640	660	80	230	600	1,180
¹Provisional