§ Mr. Jim CunninghamTo ask the Secretary of State for Work and Pensions what assessment he has made of the impact of the stakeholder pension on pension rights for women. [125355]
§ Malcolm WicksStakeholder pensions do not impose penalties if a person stops paying contributions for a time, or if they transfer their pension to another
Table 1: The gross cost of restoring a link with earnings in the basic State Pension from April 2004 £ billion 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 All pensioners 1.7 2.5 3.3 4.2 5.2 6.2 Pensioners aged 65 and over 1.6 2.2 2.9 3.7 4.5 5.4 Pensioners aged 70 and over 1.1 1.6 2.1 2.7 3.3 3.9 Pensioners aged 75 and over 800 1.1 1.4 1.8 2.2 2.6 Pensioners aged 80 and over 500 600 900 1.1 1.3 1.6
Table 2: The net cost of restoring a link with earnings in the basic State Pension from April 2004 £ billion 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 All pensioners 1.1 1.6 2.2 2.8 3.4 4.1 Pensioners aged 65 and over 1.3 1.8 2.4 3.0 3.7 4.4 Pensioners aged 70 and over 900 1.2 1.7 2.1 2.6b 3.0 Pensioners aged 75 and over 600 800 1.1 1.4 1.7b 2.0 Pensioners aged 80 and over 300 500 600 800 900 1.1 Notes:
- 1. All costs are rounded to the nearest £100 million and are in 2003–04 price terms.
- 2. Gross costs are calculated by the Government Actuary's Department and are consistent with Budget 2003 assumptions. It is assumed that the earnings link is restored in Apr 1 2004.
- 3. The net costs are calculated using the DWP Policy Simulation Model for 2005–06. The net cost represents the cost after allowing for any offsetting savings in income-related benefits.
- 4. In the case where the earnings link is restored for all pensions, it is assumed that the start of the Savings Credit is increased to the value of the earnings linked basic State Pension. In the other variants it is assumed that the start of the Savings Credit is unchanged.