HC Deb 16 May 2002 vol 385 cc848-52W
Mr. Willetts

To ask the Secretary of State for Work and Pensions (1) pursuant to the answer of 23 November 2001,Official Report, column 534W, on non-state pensions, how the figures for 2000 were calculated from the data contained in the ONS MQ5 Survey; [46485]

(2) pursuant to the answer of 23 November 2001, Official Report, column 534W, on non-state pensions, if he will break down each year's contributions between (a) contributions to self-administered pension arrangements, (b) regular premiums to individual insured pension arrangements, (c) single premiums to individual insured pension arrangements, (d) regular premiums to group insured pension arrangements and (e) single premiums to group insured pension arrangements; [46486]

(3) pursuant to the answer of 23 November 2001, Official Report, column 534W, on non-state pensions, whether individual transfers from one insured pension provider to another have been excluded from the answer; and if he will estimate the amount of such transfers in each year; [46487]

(4) pursuant to the answer of 23 November 2001, Official Report, column 534W, on non-state pensions, whether investments of existing assets of self-administered pension funds in (a) managed funds and (b) annuity contracts operated by insurance companies have been excluded from the answer; and if he will estimate the amount thereby excluded in each year; [46488]

(5) pursuant to the answer of 23 November 2001, Official Report, column 534W, on non-state pensions, if he will estimate the number of individuals for or by whom contributions were made in each year from 1992 to 2000. [46489]

Mr. McCartney

The figures quoted in my answer of 23 November 2001,Official Report, column 534W, are updated in the table. It is necessary to update them because the Office for National Statistics reissued the figures on which they are based on 16 May 2002.

Table 1 shows the amount contributed to non-state pensions for all years from 1992 to 2001. The figures include contributions of both employers and employees to self-administered pension funds and the pensions business of insurance companies.

As before, the figures show that there has been sustained growth in contributions to non-state pensions. The figures suggest that the stable economy has created

Table 2
Contributions to self-administered pension arrangements Regular premiums to individual/personal insured pension arrangements Single premiums to individual/Personal insured pension arrangements Regular premiums to group insured pension arrangements Single premiums group insured pension arrangements Total contributions to non-state pensions
Cash terms
1992 9 6 8 4 5 32
1993 10 7 10 4 6 37
1994 11 7 7 3 6 34
1995 11 8 7 4 6 36
1996 12 7 10 4 10 43
1997 12 9 11 4 14 50
1998 11 10 13 4 24 62
1999 14 10 12 4 26 67
2000 16 9 18 4 27 74
2001 16 12 24 4 31 86

the right conditions to save, and that our policies to encourage higher levels of private saving are having a positive effect.

The method used to calculate the figures is set out in the notes to the table.

Table 1: Contributions to non-state pensions
£billion
Cash terms 1997 prices
1992 32 37
1993 37 41
1994 34 37
1995 36 38
1996 43 44
1997 50 50
1998 62 60
1999 67 63
2000 74 68
2001 86 77

Notes:

  1. 1. All figures rounded to nearest £ billion.
  2. 2. Figures are based on the ONS MQ5 publication. They have been recalculated in light of the reissue of the MQ5 publication on 16 May 2002. The MQ5 publication is subject to change because it is under constant review. Since the figures above are dependent on MQ5, they are similarly subject to change.
  3. 3. The figures shown in cash terms are the sum of the series RKDL and RKAF in the ONS MQ5 publication.
  4. 4. The figures shown in 1997 prices are the sum of the same series after adjustment for price changes using the RPI index.
  5. 5. There is a small discontinuity in the series between 1998 and 1999. For further information see ONS's pension fund surveys technical article of 16 May 2002, available at www.statistics.gov.uk/ products/p502.asp.
  6. 6. The data in the above table may include some transfers from one insured pension provider to another. ONS, who produce the underlying data, look out for this possible problem and, where identified, correct for it. Information on the amount of these transfers is not available.
  7. 7. Investment of existing assets of self-administered pension funds in managed funds and annuity contracts operated by insurance companies have not been excluded.

The figures in 1997 price terms in the table represent an update to the DWP's indicator 'Amount contributed to non-state pensions—real terms (United Kingdom)'. This indicator is one of the set monitored in the Government's annual poverty and social exclusion report, "Opportunity for All". The latest report, "Opportunity for All—Making Progress" (Cm 5260) was published in September 2001.

The breakdown of these figures between different types of contributions is set out in table 2 in cash terms and then in 1997 price terms.

Table 2
Contributions to self-administered pension arrangements Regular premiums to individual/personal insured pension arrangements Single premiums to individual/personal insured pension arrangements Regular premiums to group insured pension arrangements Single premiums to group insured pension arrangements Total contributions to non-state pensions
1997 price terms
1992 11 7 10 4 5 37
1993 11 7 11 4 7 41
1994 12 7 7 4 6 37
1995 12 8 8 4 6 38
1996 12 7 10 4 11 44
1997 12 9 11 4 14 50
1998 11 10 12 4 23 60
1999 13 9 12 4 25 63
2000 14 9 17 3 25 68
2001 14 10 21 4 27 77
ONS data series on which figures are based RKDL RLVQ RLQU RKPX RLQX

Notes:

  1. 1. All notes to table 1 also apply to this table, except for notes 3 and 4, which do not apply.
  2. 2. The figures shows in cash terms are from the ONS MQ5 publication and are the series named in the last row of the table.
  3. 3. The figures shown in 1997 prices are the same series after adjustment for price changes using the RPI index.
  4. 4. Figures may not exactly add up to the totals due to rounding errors.

The source used to derive the above information does not enable an estimate to be made of the number of individuals for or by whom contributions to non-state pensions were made. However it is possible to estimate similar information using the Family Resources Survey. These figures are not directly comparable to those above because they are derived from a different source. Estimates are shown in the following table for the years available.

Table 3
Number of people who are members of a non-state pension Number of people currently contributing to a non-state pension
1995–96 15.5 n/a
1996–97 15.1 n/a
1997–98 15.0 n/a
1998–99 15.2 n/a
1999–2000 n/a 14.4
2000–01 n/a 14.4

Notes:

  1. 1. Figures are rounded to nearest 100,000.
  2. 2. Figures are for people aged 20 to state pension age.
  3. 3. Estimates are based on the Family Resources Survey. There are alternative estimates of similar information which produce slightly different results.
  4. 4. Estimates are subject to error inherent in survey-based data.

Mr. Frank Field

To ask the Secretary of State for Work and Pensions, pursuant to his answer of 2 May 2002,Official Report, column 978W, if he will provide information on male pensioners on the same basis. [55299]

Mr. McCartney

The information requested for different pensioner groups has been provided on the same basis. Figures have been provided where sample sizes and other factors dictate that they are sufficiently robust. In the case of the information requested for single pensioners, sample sizes for single men were too small to allow robust comparisons over short time periods to be carried out, whereas sample sizes for single women were larger as there are more of this group in the population.