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Employees

Mr. Webb: To ask the Secretary of State for Social Security if he will estimate, on the basis of the Family Resources Survey, and pooling years of data, the number of benefit units which contain at least one employee whose net earnings is in each £5,000 band up to £30,000 and above, indicating separately the figures for (i) lone parent families, (ii) two parent families with one child, (iii) two parent families with two children and (iv) two parent families with three or more children, providing within each category separate figures for those in (a) firms of up to 25 employees and (b) firms of 25 employees or more. [64780]

Angela Eagle: The information is not available in the form requested. Such information as is available is in the tables.

Number of two parent family benefit units with at least one employee by number of dependent children and number of employees in the local unit of the firm by which they are employed (excluding those benefit units where at least one member is either full or part-time self-employed--Average of period 1994-95 to 1996-97

Thousand
Number of employees in localNumber of benefit units by net earnings bands
Number of dependent childrenunit0-55-1010-1515-2020-2525-3030+
One1-24305090100653540
25+2080180265205130180
Two1-24305095105604050
25+2565210300270150225
Three or more 1-2420254035201515
25+154080100705060

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Number of lone parent family benefit units where the head is an employee by the number of employees in the local unit of the firm by which they are employed (excluding those benefit units where at least one member is either full or part-time self-employed Average of period 1994-95 to 1996-97

Thousand
Number of benefit units by net earnings bands
Number of employees in local unit0-55-1010-1515-2021-2425-3030+
1-24130653010***
25+90110703010**

Notes:

1. All figures are estimates and are taken from the Households Below Average Income (HBAI) data set based on the Family Resources Survey (FRS). The FRS does not include Northern Ireland.

2. Only benefit units with at least one employee were considered when answering this question. Benefit units containing at least one person who was either fully or part-time self-employed were excluded.

3. The income bands in the tables relate to the total net earnings of the benefit unit as opposed to the individual.

4. The definition of employment used is: "whether the individual was employed and at work, or employed but away from work, in the last week".

5. Where both members of a couple are employed, the value taken for the number of employees in the local unit of the firm was that for the head of the benefit unit, unless they were not working, in which case that for the spouse was assumed instead.

6. The concept of the number of employees in the local unit of a firm used in answering this question is different from the usual definition of a small firm (ie the number of employees of the enterprise as a whole, across all local units) which is not available from the FRS. Given this fact, in conjunction with the use of the net earnings (as defined for HBAI) rather than assessable income (as defined for the proposed Working Families Tax Credit (WFTC)), it is advised that it would not be considered appropriate to use the data supplied in any analysis of the administration of the WFTC. The exclusion of all benefit units containing the self-employed would also have a bearing on this issue.

7. The figures given are rounded to the nearest 5,000 benefit units. The entries marked "*" have values of less than 5,000.

8. To provide more robust estimates at such a fine level of detail, the HBAI data set was pooled over three financial years, from April 1994--March 1997.

9. As the FRS does not actually collect annual earnings data from individuals, this figure was estimated from weekly earnings data. As the earnings data collected relates solely to the last pay-cheque received, it will not take into account any bonuses, pay-rises or changes of employment that may take/have taken place at other points in the year.

10. The earnings bands were taken to be in April 1998 prices, and all earnings data from each of the financial years used was uprated accordingly, to April 1998 prices, using the Retail Prices Index (RPI).


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Widows

Mr. Chaytor: To ask the Secretary of State for Social Security (1) what estimate he has made of the number of widows who will receive reduced benefit payments following the implementation of his reform proposals; [66352]

Angela Eagle: Following implementation of the proposals, widows and widowers aged over 45 when they are widowed and who are not entitled to Widowed Parent's Allowance will be able to claim Bereavement Allowance, which will be payable for up to six months.

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In the first full year following implementation, it is estimated that, at any one time, the average number of widows and widowers entitled to the Bereavement Allowance, which will end after 6 months, will be 20,000.



    1. Numbers of widows and widowers have been supplied by the Government Actuary's Department.


    2. Numbers are rounded to the nearest 10,000.


    3. These estimates are intended to represent broad orders of magnitude.

Pensions

Mr. Webb: To ask the Secretary of State for Social Security what the effect would be of an immediate increase in the age addition to the basic state pension to (a) £5 for the over 80s, (b) £5 for the over 80s and £3 for

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the over 75s and (c) £10 for the over 80s and £5 for the over 75s, on the number of pensioners receiving income support in (i) 1999-2000 and (ii) 2000-01. [65422]

Mr. Timms: The information is in the table.

Reduction in the number of pensioner benefit units receiving income support with the proposed age additions

1999-20002000-01
£5 to 80+s-40,000-40,000
£3 to 75-79s, £5 to 80+s-50,000-60,000
£5 to 75-79s, £10 to over 80+s-140,000-160,000

Notes:

1. Estimates are based on the 1995-96 Family Resources Survey and the Income Support Quarterly Statistical Enquiry.

2. Estimates are rounded to the nearest 10,000 and provide broad orders of magnitude.


Mr. Webb: To ask the Secretary of State for Social Security what estimate he has made of the combined value of the basic pension and the proposed second state pension as a proportion of average earnings once the new scheme has fully matured, for someone with annual earnings of (a) £4,500, (b) £9,000, (c) £13,500, (d) £18,000 and (e) £22,500. [65426]

Mr. Timms: The information is in the table.

Combined value of basic state pension and state second pension as a proportion of national average earnings in retirement

Annual earnings (£)Percentage
4,50021
9,00021
13,50023
18,00025
22,50026

Notes:

1. Results are presented for a person who begins work at age 16 in 2002; earns the amounts specified (in 1998 earnings terms) throughout their working life; retires at age 65 in 2051.

2. Real average earnings are assumed to grow at 1.5 per cent. per annum.

3. 1998 national average earnings are taken from the New Earnings Survey 1998 as average gross weekly earnings for full-time employees on adult rates whose pay was not affected by absence during the survey pay-period.


Mr. Cousins: To ask the Secretary of State for Social Security (1) what is his policy on whether (a) lump sums paid as part of pensions on retirement and (b) capital sums held as part of approved personal plans before annuitisation will be subject under the minimum pensions guarantee to the savings limits and tariff income schedule regimes of existing income support; [66454]

Mr. Timms: Initially, the rules governing the treatment of resources will remain unchanged. However, in "Partnership in Pensions" we made it clear that we will examine ways of amending the rules to reward better those who have saved for their retirement. We hope to bring forward proposals later in this Parliament.

20 Jan 1999 : Column: 472


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