Stakeholder Pensions (Hansard, 17 December 2001)

§ Mr. McCartney

As set out in our 1998 Green Paper "Partnership in Pensions" the Government's long-term pension reforms are designed to ensure that all pensioners have a decent income in retirement, building on the foundation of the basic state pension available to all. This means everyone recognising their responsibilities; with those who are able, saving for their retirement, the Government supporting those who cannot save, and the private sector providing affordable and secure second pensions.

Before April 2001, many of those who could put money aside to provide for themselves in retirement had no straightforward, good-value way to enter a pension scheme. Stakeholder pensions, which were introduced from that date, offered such people a route through provision of a simple, low-charge, flexible pension scheme which, for many employees, can be accessed through their workplace.

Income-related benefit recipients in the Regent's Park and Kensington, North constituency
	May 1998	May 1999	May 2000	May 2001
Income support	14,600	14,000	13,600	13,600
Jobseeker's allowance (income based)	4,900	4,700	3,600	3,200
Family credit/working families' tax credit¹	1,300	1,600	1,900	2,200
Disability working allowance/disabled person's tax credit¹	20	24	31	38
Total	20,800	20,400	19,200	19,000
¹ Family credit and disability working allowance were replaced in October 1999 by working families' tax credit and disabled person's tax credit which are not social security benefits.

Notes:

1 Figures (other than disability working allowance/disabled person's tax credit which is a 100 per cent. count of all cases) are based on a 5 per cent. sample and are therefore subject to a degree of sampling error.

2 Income support, jobseeker's allowance (income-based), family credit/working families' tax credit and "Total" figures have been rounded to the nearest hundred.

3 Income support/jobseeker's allowance claimants in receipt of family credit/working families' tax credit or disability working allowance/disabled person's tax credit are not shown in income support/jobseeker's allowance totals.

4 Disability working allowance/disabled person's tax credit figures are for April each year.

5 Totals may not sum due to rounding.

Source:

Income Support Quarterly Statistical Enquiries May 1998-May 2001

Jobseeker's Allowance Quarterly Statistical Enquiries May 1998-May 2001

Family Credit/Working Families' Tax Credit Quarterly Statistical Enquiries May 1998-May 2001

Disability Working Allowance/Disabled Person's Tax Credit Quarterly Statistical Enquiries April 1998-April 2001

154W

Stakeholder pensions are open to everyone and over 490,000 have been sold in their first seven months on the market. They are particularly targeted at moderate and higher earners who do not have access to an occupational pension or to a cost-effective personal pension. Many of the target group work for employers without a comprehensive occupational or personal pension scheme for their staff before the introduction of stakeholder pensions. The requirement for such employers to provide their work force with access to a stakeholder pension scheme came into force on 8 October. It is too early to have sufficient information on which to base a reasoned assessment of take-up by the target group.