§ Mr. CousinsTo ask the Secretary of State for Work and Pensions if he will list the accrual rate implied by the state second pension in each £1,000 band of income up to £20,000 a year in the SSP in its(a) earnings related and (b) flat rate forms. [3699]
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§ Mr. McCartneyThe information is in the table:
State second pension accrual rates1 Annual earnings (£) Phase (A)(percentage) Phase 2(B)(percentage) 4,000 1,040 1,040 5,000 212 212 6,000 118 118 7,000 82 82 8,000 63 63 9,000 51 51 10,000 43 43 11,000 38 37 12,000 34 32 13,000 32 29 14,000 29 26 15,000 28 24 16,000 26 22 17,000 25 20 18,000 24 19 19,000 23 17 20,000 22 16 1The accrual rates shown are based on a 49-year working life, expressed in current terms. Unlike SERPS, which has an accrual rate of 20 per cent, the accrual rate for state second pension varies depending on income. State second pension concentrates the most help on the lowest paid. For example, a person earning £6,000 a year through their working life would get £59 a week from state second pension, £46 more than they would have received from SERPS.