§ Mr. WebbTo ask the Secretary of State for Social Security, pursuant to paragraph 20, on page 4 of "Partnership in Pensions", Cm 4179, what proportion of people currently work throughout their working life. [65578]
§ Mr. TimmsThe information is not available in the form requested.
The available information drawn from an analysis of National Insurance records shows that nearly 20 per cent. of the 800,000 people aged 54, who had computer records on the system in 1995–96, were employees throughout their working lives. This is based on a working life to 1995–96 of 34 years and men and women have been treated equally. (To qualify for the full rate of basic State 48W pension a person has to pay or have credited National Insurance contributions for nine-tenths of their working life).
The Government's new State Second Pension will boost the second pension entitlement of those on low income, carers and long-term disabled people with broken work records. The combination of basic State pension and a second pension will cut the number of people who need to rely on income-related benefits in retirement.
Notes:
- 1. A cohort of 54 year old people was chosen as this is the only age group for which a full 1 per cent. sample is available at present.
- 2. Before 1975 a full working year has been taken as one in which a person paid Class I contributions for 50 weeks in that year; and, after 1975, contributions on earnings equivalent to 50 times the lower earnings limit. Periods of employment outside Class 1 employment have not been included. For example, self-employment and, prior to the raising of school leaving age in 1972, periods in employment under the age of 16 years.
§ Mr. WebbTo ask the Secretary of State for Social Security what will be the incremental value to(a) the basic state pension and (b) the state second pension, of a year spent caring for a disabled person under his proposed pension reforms. [65577]
§ Mr. TimmsThe incremental value of a year of caring will depend upon a number of factors, including the year in which care is given, the total number of years spent caring and the total number of years worked.
An individual who has a single year of caring upon introduction of the State Second Pension, who has 43 other qualifying years before retirement and no further years of caring, would receive £0.80 per week Basic State Pension and £0.90 per week State Second Pension more than if they had no years of caring.
Notes:
Figures are given in constant 1998 earnings terms.
Figures are rounded to the nearest £0.10.