§ Mr. GibbTo ask the Secretary of State for Work and Pensions pursuant to his answer of 9 September,Official Report, column 303W, on pensions, what percentage of stakeholder pension sales went to working individuals earning between (a) £10,000 and £20,000, (b) £20,000 and £30,000, (c) £30,000 and £40,000, (d) £40,000 and £50,000 and (e) £50,000 and £60,000; and if he will make a statement. [131953]
§ Malcolm WicksThe information requested is in the following table giving a breakdown of stakeholder pension sales for the 2001–02 tax year by earnings of policyholders:
Annual earnings of stakeholder pension policy holders Percentage of total stakeholder pension sales Under £10,000 24 £10,000 to £20,000 40 £20,000 to £30,000 19 £30,000 to £40,000 5 £40,000 to £50,000 2 £50,000 to £60,000 1 £60,000 and above 2 Notes:
7 per cent. of sales were to people not in work (e.g. children, spouses, the unemployed and pensioners).
Earned income data are derived from the Survey of Personal Incomes (SPI) and consists of all income chargeable under Schedule E (mainly pay, private and occupational pensions, retirement annuities and state retirement pensions) Schedule D Cases I and II (self-employment income), and miscellaneous other earnings.
The SPI is a representative sample of nearly 200,000 individuals, drawn from the Revenue's Self Assessment, Pay As You Earn and Claims systems. Where we have been able to match these individuals to the SPI, primarily those with earned income, the totals in the tables are based on this sample.
Around two-thirds of stakeholder pensions taken out in their first year on the market have been by people on moderate incomes (earning under £20,000 a year). This demonstrates the encouraging start that stakeholder pensions have made in offering people, particularly modest earners, a new opportunity to save for their retirement.
Source:
Inland Revenue data for 2001–02 tax year
Mr. Michael Jabez FosterTo ask the Secretary of State for Work and Pensions what the percentage increase was in the basic state retirement pension between April 1997 and April 2003; and what the increase in the Retail Price Index is that would have applied under the previous formula. [132326]
§ Malcolm WicksThe information is in the table.
331W
Percentage increase in basic state pension on previous year Retail prices index (percentage in September of previous year) 1997–98 2.1 2.1 1998–99 3.6 3.6 1999–2000 3.2 3.2 2000–01 1.1 1.1 2001–02 7.4 3.3 2002–03 4.1 1.7 2003–04 2.6 1.7 Section 150 of the Social Security Administration Act 1992 provides for the Secretary of State to review the amount payable in respect of pensions and to increase them in line with the general level of prices.
Over the last three years basic state pension has been increased by more than the Retail Prices Index (RPI). We have announced that we will increase the basic State Pension by 2.5 per cent. or RPI, whichever is the higher, for the remainder of this Parliament.