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Personal Pensions

Mr. Denham: To ask the Secretary of State for Social Security what estimate he has made of the cost in the first year of introducing age-related rebates to appropriate personal pensions as proposed in his current consultation document; and what would be the cost if the proposed levels were raised by (a) 0.25 per cent., (b) 0.5 per cent., (c) 0.75 per cent., (d) 1 per cent., (e) 1.25 per cent., (f) 1.5 per cent., (g) 1.75 per cent. and (h) 2 per cent. of allowable earnings. [13958]

Mr. Heald: The information is in the table.

Additional rebate (per cent. upper	Total cost 1997-98	Cost above 1997-98 baseline
band earnings)	(£ million)	(£ million)
Baseline	1,885	n/a
0.25	1,970	85
0.50	2,045	160
0.75	2,125	240
1.00	2,200	315
1.25	2,275	390
1.50	2,350	465
1.75	2,430	545
2.00	2,505	620

1. The figures are in respect of 1997-98 accruals. Costs would not arise until 1998-99 because rebates for appropriate personal pensions (APPs) are paid in arrears. The figures have been calculated in 1994-95 price terms.

2. The "baseline" figures reflect the proposed age-related rebates for APPs set out in the Government Actuary's consultative note on contracting-out terms issued in August 1995.

3. The costings assume the same age and earnings distribution and numbers of individuals in APPs under each of the proposed set of rebate levels shown.

7 Feb 1996 : Column: 281

Pensions Information Line

Mr. Chris Smith: To ask the Secretary of State for Social Security what instructions and guidance has been issued to those giving advice on the "pensions info-line" about the information and advice to be given to callers. [13415]

Mr. Heald: All those giving advice on the "pensions info-line" follow a carefully prepared script on computer that has been devised to cater for different types of inquiry. Help screens with prescribed wording are also available on the computers, should the need arise--for example, to explain the content of a leaflet or to give out the telephone number of a trade association.

7 Feb 1996 : Column: 282

All operators are briefed by departmental staff on a regular basis about new or revised literature, as well as about any forthcoming press or publicity activity which might result in increased numbers of calls on particular pensions issues.

Operators are not allowed to deal with calls to the info-line until they have undergone training and can demonstrate to the supervisor's satisfaction a sound knowledge of the script and of DSS pensions literature.

In accordance with the Financial Services Act, operators do not give financial advice to callers.

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