§ Jackie BallardTo ask the Secretary of State for Social Security how many pensioners in the UK(a) received their pension every four weeks, (b) received 12 pension payments and (c) received 13 pension payments in 1999–2000. [118834]
§ Mr. RookerThe administration of retirement pension is a matter for Peter Mathison, the Chief Executive of the Benefits Agency. He will write to the hon. Member.
Letter from Peter Mathison to Jackie Ballard, dated 17 April 2000:
The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question asking how many pensioners in the UK (a) received their pension every four weeks, (b) received 12 pension payments and (c) received 13 pension payments in 1999–2000.At March 2000, a total of 3,873,606 pensioners were receiving their retirement pension by four weekly payments. The payments were made four weeks in arrears and paid by Automated Credit Transfer (ACT) direct into the pensioners bank or building society accounts. All customers who were paid retirement pension by four weekly payments throughout the year would receive 13 four weekly pension payments.
§ Mr. FlynnTo ask the Secretary of State for Social Security by what percentage the basic retirement pension could be increased in April without reducing the expected balance of the National Insurance Fund at the end of the year 2001–02 below the minimum level recommended by the Government Actuary. [117588]
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§ Mr. RookerThe information is in the table.
The basic pension and linked benefits could be increased by 11.8 per cent. in April 2000 without reducing the National Insurance Fund below the minimum level recommended by the Government Actuary in 2001–02. However, funding this level of increase even in that year only and with a return to uprating in line with prices thereafter would lead to a large shortfall in the next year and in subsequent years. This would lead to an increase in rates of National Insurance Contributions. Thus it can be seen that allocation of a surplus to an immediate increase has consequences for future years by wiping out this surplus.
Effects on national insurance fund if basic retirement pension and linked benefits are increased by 11.8 per cent. above April 2000 rate £ billion NI fund balance at end of year Minimum recommended Excess/shortfall 1999–2000 13.8 7.7 6.1 2000–01 12.1 8.6 3.5 2001–02 9.0 9.0 0.0 2002–03 4.6 9.4 -4.8 2003–04 -1.3 9.8 -11.1 Source:
Government Actuary's Department