§ 24. Mr. BurstowTo ask the Secretary of State for Social Security (1) what plans he has to compensate people who have been misinformed about the inheritance rules for SERPS; [93773]
(2) what estimate he has made of (a) the net costs of, (b) the gross costs of and (c) how many people would benefit from delaying the changes to the amount of SERPS payable to widows and widowers from (1) 2000 until 2010 and (2) 2000 until 2005 in (i) 2000 and (ii) every subsequent year until 2020; and how the (x) gross and (y) net costs of such a delay are calculated. [95256]
§ Mr. RookerThe information is not available in the format requested. Such information as is available is in the table.
723W
Estimated gross costs of delaying the changes to SERPS inheritance provisions and average numbers of widows and widowers who could be affected at any one time in each year Gross costs (£ million) Delay until 2010 Potential numbers affected (thousand) 2000–01 60 100 2001–02 160 300 2002–03 280 490 2003–04 390 670 2004–05 510 830 2005–06 630 990 2006–07 750 1,140 2007–08 870 1,270 2008–09 990 1,400 2009–10 1,110 1,520 2010–11 1,160 1,540 2011–12 1,120 1,450 2012–13 1,080 1,370 2013–14 1,040 1,280 2014–15 1,000 1,210
Estimated gross costs of delaying the changes to SERPS inheritance provisions and average numbers of widows and widowers who could be affected at any one time in each year Gross costs (£ million) Delay until 2010 Potential numbers affected (thousand) 2015–16 960 1,130 2016–17 920 1,060 2017–18 880 990 2018–19 830 920 2019–20 790 860 2020–21 750 860
Gross costs (£ million) Delay until 2005 Potential numbers affected (thousand) 2000–01 60 100 2001–02 160 300 2002–03 280 490 2003–04 390 670 2004–05 510 830 2005–06 560 890 2006–07 550 840 2007–08 530 790 2008–09 510 750 2009–10 500 700 2010–11 480 660 2011–12 460 620 2012–13 450 580 2013–14 430 550 2014–15 410 510 2015–16 390 470 2016–17 370 440 2017–18 360 410 2018–19 340 380 2019–20 320 350 2020–21 300 330 Notes:
- 1. Gross costs and potential numbers affected are supplied by the Government Actuary's Department. An explanation of the method for calculating gross costs of Additional Pension is given in the Government Actuary's Department publication 'National Insurance Fund: Long Term Financial Estimates', Appendix D (paragraphs 14.39 to 14.45), available in the House of Commons Library.
- 2. Precise estimates of net costs are not available.
- 3. Estimates of numbers affected assume that all widows and widowers have some SERPS entitlement although in reality there will be some who do not. Cases where the widower is over State pension age but the deceased partner is under State pension age are included in the estimates. These will both tend to overestimate the numbers affected.
- 4. Gross costs are rounded to the nearest £10 million, and are in 1999–2000 price terms. Potential numbers affected are rounded to the nearest 10,000.
- 5. Estimates assume average earnings growth from 1999 onwards of 1.5 per cent. per year above prices. The State Second Pension and Welfare Reform Bill changes are not taken into account in these figures.
§ Mr. BurstowTo ask the Secretary of State for Social Security (1) when he intends to announce his decision as to what action he will take to remedy the problem of the changes to the inheritance of SERPS by spouses; and what provision has been made in the(a) CSR and (b) Contingency Fund to meet any extra costs; [95180]
724W(2) what assessment he has made of (a) the administration costs and (b) the setting-up time of a scheme to compensate those misled about the halving of the amount of SERPS payable to widows and widowers; and if he will make a statement; [95178]
(3) what assessment he has made of the ability of those misled about the halving of the amount of SERPS payable to widows and widowers to prove they were misinformed; and if he will make a statement. [95181]
§ Mr. RookerWe will make an announcement about SERPS inheritance provisions shortly.