HC Deb 06 April 2000 vol 347 cc529-30W
Mr. Gerald Howarth

To ask the Secretary of State for Social Security how many single mothers with dependent children are making pension contributions through(a) National Insurance, (b) SERPS and (c) private pension schemes; how many are making no such contributions; and if he will estimate his Department's unfunded liability, assuming present levels of pension payments, in (i) 2020, (ii) 2040 and (iii) 2060. [117530]

Mr. Rooker

There are 2.2 million single mothers with dependent children making pension contributions through National Insurance. Of these 1.3 million (60 per cent. of those paying National Insurance) have private pension cover, while 0.9 million (the remaining 40 per cent. of those paying National Insurance) are contributing to SERPS. Around three million single mothers were making no pension contributions.

Notes:

  1. 1. The figures have been rounded to the nearest hundred thousand.
  2. 2. The percentages have been rounded to the nearest whole percent.
  3. 3. The analysis is restricted to working age employees.
  4. 4. The figures are based on the FRS which is a self-reporting survey. This may lead to an element of inaccuracy as people are not always clear about their pension arrangements.

Source:

Family Resources Survey 1997–98.

The estimated expenditure on National Insurance benefits for pensioners under current legislation is £51.7 billion in 2020–21, £64.8 billion in 2040–41 and £65.8 billion in 2060–61, in 1999–2000 price terms.

Notes:

  1. 1. The figures on pension payments refer to payments to all pensioners, not to single mothers only.
  2. 2. These figures refer to the expected expenditure on National Insurance benefits for pensioners in the specified years.
  3. 3. The estimates allow for the Welfare Reform and Pensions Act 1999 and exclude HRP in SERPS, but do not allow for any effects of S2P or Stakeholder Pensions.
  4. 4. Income related benefit expenditure on pensioners is not included in the estimates.

Source:

The Report by the Government Actuary on the Child Support, Pensions and Social Security Bill, 1999.