§ Mr. GardinerTo ask the Secretary of State for Work and Pensions what are the levels of pensions as a proportion of average weekly earnings in(a) the UK and (b) each other EU member state. [19956]
§ Mr. McCartneyThe most recent figures available date from 1994–95 (except those for Italy where they are from 1993–94). They do not take account of the fact that since 1997 this Department has taken a number of measures to improve the income of pensioners, particularly the poorest of this group. Over 2 million pensioners benefit from the Minimum Income Guarantee (MIG), currently £98.15 for a single pensioner and over 10 million pensioners benefited from the above inflation increases in basic Retirement Pension. Over 11 million Winter Fuel Payments, at a cost of around £1.7 billion, were sent out last winter.
Since 1997 single pensioners in receipt of MIG, Winter Fuel Payments and free TV licences are at least £18.00 a week better off and pensioner couples have gained by more than £27.
A further step is the Government's intention to introduce Pension Credit in October 2003. Around half of all pensioner households will be eligible for the Pension Credit—5.1 million individual pensioners or 3.7 million pensioner households stand to gain (excludes those living in residential care and nursing homes). On average, they will gain £400 a year, with some getting up to £1,000 a year.
It will get more money into pensioner's pockets and ensure that no single pensioner need live on less than £100 a week (£154 a week for couples).
The level of average UK pension income from all sources of income as a proportion of average weekly earnings is not available. The level as a proportion of population net income is 78 per cent.
Information for other EU member states is available on the same basis. This is in the table.
Percentage Country Pension Income as Proportion of Population Income France 90 Sweden 89 Austria 87 Netherlands 86 Germany 86 Italy 84 Finland 79 Belgium 78 UK 78 Greece 77 Ireland 75 Norway 74 Denmark 73 Notes:
Data is for 1994 and 1995 except Italy, 1993.
Quoted in 'Cross-country comparisons of pensioner's incomes'. Research report No. 142, DSS, p22.
Source:
Labour Market and Social Policy—Occasional Papers No. 42. OECD.
77W
§ Mr. BoswellTo ask the Secretary of State for Work and Pensions what action he is taking in conjunction with the Occupational Pensions Regulatory Authority to monitor and control pension liberation schemes. [52254]
§ Mr. McCartneyThe Occupational Pensions Regulatory Authority and the Inland Revenue are working closely together to investigate a number of such cases that have been reported to them. It is important that any malpractice is identified quickly and eliminated. Meetings including officials from the Occupational Pensions Regulatory Authority, the Inland Revenue, the Financial Services Authority and my Department are being held, and my officials are keeping in close touch with the investigations.
§ Mr. Andrew TurnerTo ask the Secretary of State for Work and Pensions (1) if he will list the countries in which UK recipients of the state retirement pension do not receive regular upratings; and what the estimated annual cost is of extension of upratings to each such country; [52122]
(2) for what reasons United Kingdom recipients of the state retirement pension resident abroad receive upratings in some countries and not others. [52123]
§ Mr. David MarshallTo ask the Secretary of State for Work and Pensions in which countries British pensioners living abroad(a) have and (b) do not have their pensions increased in line with inflation. [54473]
§ Mr. McCartneyAnnual upratings have never been generally paid abroad. Exceptions apply under the EC's Social Security Regulations, which apply to pensioners who have a UK pension living in the European Economic Area, and under reciprocal social security agreements with other countries, which allow for increases to be paid there. The countries with which the UK has reciprocal agreements which allow pension upratings to be paid are: Barbados, Bermuda, the Channel Islands, Cyprus, Israel, Jamaica, Malta, Mauritius, the Philippines, Switzerland, Turkey, the USA and the now separate republics of the former Federal Peoples Republic of Yugoslavia (the Federal Republic of Yugoslavia (Serbia Montenegro, Bosnia Herzegovina), Croatia, Slovenia and the Former Yugoslav Republic of Macedonia). Pensions are not uprated in any other country.
To bring everyone up to the current rate they would receive if they had remained in the UK, but not to pay arrears, would cost around £400 million in 2002–03.
Uprating is paid in some countries because the Government are either legally required to do so or have previously entered into reciprocal agreements to do so. However, the underlying intention of uprating is that it is meant to cover increases in the cost of living in this country.