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Goods and Services

Mrs. Roche: To ask the Secretary of State for Social Security how much his Department paid to the private sector for goods and services in 1995-96. [29452]

Mr. Burt: The information is not available in the format requested.

The Department's total expenditure on goods and services in 1994-95, the most recent year for which figures are available, was £1.47 billion 1 .


National Insurance

Dr. Godman: To ask the Secretary of State for Social Security what assessment he has made of the value for money achieved to date by the national insurance records 2 system; and if he will make a statement. [29371]

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Mr. Heald: When considering schemes under the private finance initiative it is a fundamental principle that overall best value for money in providing a service is assessed by taking into account all aspects of design, finance and operation as a unified whole. During the NIRS2 evaluation process, tenders from suppliers were compared with a fully costed in-house option to confirm that a PFI procurement represented value for money; and were compared with each other to establish the most economically advantageous option.

Under the NIRS2 contract, Andersen Consulting will receive no payment until the system is fully accepted and operational. Andersen Consulting has therefore incurred the development costs to date that would otherwise have fallen to the public sector.

Dr. Godman: To ask the Secretary of State for Social Security what measures he has taken to ensure that the delay in the delivery of the national insurance records 2 system will not be repeated in other private finance initiative projects undertaken by his Department and its agencies; and if he will make a statement. [29372]

Mr. Heald: Variations to implementation timetables are not uncommon when procuring computer systems of the size and complexity of, for example, NIRS2. They can occur for a variety of reasons; and in both publicly and privately financed projects. Under private finance initiative principles, service providers are required to take the responsibility, and the risks, for the design, development and delivery phases of projects. The Department will continue to employ vigorous contract management and service monitoring on all of its PFI procurements to ensure that contractual obligations are met.

Performance Bonds

Mrs. Roche: To ask the Secretary of State for Social Security what is his Department's policy on the use of performance bonds; in what circumstances they are used; what was the total sum paid by bond in each of the last five years; and if his Department requires bonds from businesses with fewer than (a) 100, (b) 50 and (c) 20 employees. [29426]

Mr. Burt: Our aim is to follow the advice on the use of performance bonds set out in the central unit on procurement's guidance note No. 48 in "Bonds and Guarantees". The decision to use a performance bond is made on a case-by-case basis, after considered judgment of any risks a specific contractor may present to a particular contract, regardless of the size of the contractor. We do not collect information of amounts paid by bond.

Asylum Seekers

Ms Glenda Jackson: To ask the Secretary of State for Social Security (1) how many asylum seekers receive reduced rate benefits under the urgent cases regulations at (a) the Euston district benefits office and (b) the Neasden district benefits office; [29749]

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Mr. Roger Evans: The information is not available and could be obtained only at disproportionate cost.

Earnings Top-up Scheme

Mr. Hayes: To ask the Secretary of State for Social Security what plans he has to publish detailed rules of the earnings top-up scheme. [30192]

Mr. Burt: I have today published, and placed in the Library, the printed version of the rules of the earnings top-up pilot scheme. The draft version of the rules was presented to the Social Security Advisory Committee and to Parliament in November last year.

The aim of earnings top-up is to help people without dependent children enter and remain in work. The three-year pilot, running in eight areas from October 1996, at a cost of £65 million, will test how effective it is in doing that. Couples could receive up to £56 a week on top of earnings and single people up to £28 a week.

I have also today placed in the Library a summary of the research programme for earnings top-up. This paper in the Department's research series explains how this important evaluation will be undertaken by three independent research institutes.

To help with the technical evaluation I have appointed a panel of experts to provide advice on the research programme. The members are:


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Child Benefit

Mr. Steinberg: To ask the Secretary of State for Social Security what is the total number of children aged (a) 16, (b) 17, (c) 18 and (d) 19 years; and how many in each age group are in receipt of child benefit. [30137]

Mr. Andrew Mitchell: The information is in the table. Child benefit is not payable in respect of 19-year-olds; entitlement ends on the 19th birthday.

16171819
Total number of children in age bands637,200627,300656,900686,200
Numbers receiving Child Benefit (9), (10) 577,100400,700177,600Nil

Notes:

(9) Figures are based on a 1 per cent. sample of the Child Benefit computer system.

(10) The figures quoted are provisional and do not include any late amendments or awards.


Pensions

Sir Norman Fowler: To ask the Secretary of State for Social Security what estimate he has made of (a) the annual savings in public spending which will result from the pension changes, with particular reference to the state earnings-related pension scheme, made by the Social Security Act 1986 in the years (i) 2000, (ii) 2005, (iii) 2010, (iv) 2015, (v) 2020 and (vi) 2025, and (b) the maximum annual saving from those changes. [30141]

Mr. Heald: The information requested is not available. Net savings in public expenditure cannot be estimated over the period; for example, we cannot predict the offsetting savings on income-related benefits this far in advance.

Estimates of expenditure on additional pension are given in the table.

The maximum annual saving in expenditure on additional pension from the changes made by the Social Security Act 1986 is estimated at over £35 billion in 2050. Estimates are not available for years after 2050.

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£ billion 1994-5 prices (rounded to .1 billion)

Year2000-012005-062010-112015-162020-212025-262030-312040-412050-51
Pre Social Security Act 1986 regime(11)4.28.012.018.025.033.041.049.055.0
Pre Pensions Act 1995 regime(12)4.26.79.211.814.516.618.719.519.3
Estimated savings01.32.86.210.516.422.329.535.7

(11) Figures are approximations based on figures from the Social Security Bill 1986, report by the Government Actuary on the Financial Effects of the Bill on the National Insurance Fund (Cmnd 9711) allowing for an extra five million people contracted out in Appropriate Personal Pensions, and the report by the Government Actuary on the Financial Effects of the Pensions Bill 1994 on the National Insurance Fund (Cm 2714). They assume price uprating of benefits and are in respect of retirement pensioners only.

(12) The figures are taken from the report by the Government Actuary on the Financial effects of the Pensions Bill 1994 on the National Insurance Fund (Cm 2714), assume price uprating of benefits and are in respect of retirement pensioners only.


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