§ Mr. Jim CunninghamTo ask the Secretary of State for Work and Pensions what steps his Department is taking to address the imbalances in levels of pensions between men and women, with particular reference to women from ethnic minorities. [162862]
§ Malcolm WicksMeasures instituted by this Government since 1997 to improve pensioners' incomes have been targeted largely on those in the lower part of the income distribution who tend to be older, female, and from ethnic minorities.
The main measures since 1997 include: above inflation increases in the Basic State Pension between April 2000 and April 2003; the introduction of the Minimum Income Guarantee and then Pension Credit which, from April 2004, will ensure that no single pensioner need live on less than £105.45 a week and no couple on less than £160.95 a week, as well as providing extra support for those with modest savings; Winter Fuel payments of £200 a year for the remainder of this Parliament; an extra £100 a year within the Winter Fuel Payments for those aged 80 or over; free TV licences for individuals aged 75 or over; and an extra 100 for households with at least one pensioner aged 70 or over.
The Government will be spending around £10 billion a year extra on pensioners in 2004–05 as a result of these measures. They have resulted in pensioner households gaining –1,350 a year in real terms with the poorest third of pensioners gaining £1,750 a year in real terms.
In addition, the DWP provides comprehensive guidance to staff on providing a service to ethnic minority communities. The Department also provides information in a range of languages and holds an annual Ethnic Minority forum at which issues affecting black and minority ethnic pensioners are discussed.
§ Mr. Jim CunninghamTo ask the Secretary of State for Work and Pensions what plans his Department has to require compulsory employer contributions to workers' pensions. [162863]
§ Malcolm WicksThe Government currently have no plans to require compulsory employer contributions. We believe in the value of employer contributions but also in the pensions partnership that is at the heart of the voluntarist system.
It is, however, important that progress is independently monitored. That is why we have established the Pensions Commission to monitor how the voluntarist system is developing. On the basis of the Commission's recommendations, we will decide whether there is a case for moving beyond the current voluntary approach.
§ Annabelle EwingTo ask the Secretary of State for Work and Pensions whether he plans to reach a conclusion prior to the report stage of the Pensions Bill860W as to his policy on the position of those pension fund holders who have already lost out and are precluded from cover by the proposed protection fund as a result of the proposed date of entry of the same. [162946]
§ Malcolm WicksThe Government are sympathetic to all those people who will not receive the pension they worked so hard to build up for their future retirement. We have been meeting some of those affected and listened to suggestions regarding assistance ahead of the Pension Protection Fund's introduction. But there are complex arguments on both sides.
We are now exploring with industry representatives the basis on which we can establish firm estimates of the extent of the problem of defined benefit schemes winding-up under funded, the numbers affected and the potential scale of losses. Once those data have been collated, I will be in a better position to report more fully the findings of our examinations and what, if any, the appropriate course of action should be.