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Pension Reform
24. Dr. Julian Lewis: To ask the Secretary of State for Social Security if he will make a statement on his proposals for pension reform. [88050]
Mr. Timms: Our strategy for a fundamental reform of the pensions system was set out in the pensions Green Paper "A New Contract for Welfare: Partnership in Pensions" published before Christmas. It is based on the principle that everyone who can save for his or her retirement has a responsibility to do so. In turn we have a responsibility to provide security in retirement for those who cannot save enough. Our proposals are based on four interlinked pillars:
Occupational pension schemes are one of the main reasons for the improvement in pensioners' incomes over the recent decades and will continue to play a vital role. We want to build on the success of traditional occupational schemes. In the "Strengthening the Occupational Pensions Framework" consultation paper that was published on the day after the pensions Green Paper we set out a number of proposals to strengthen and simplify the regulation of occupational schemes.
Our objective is to bring the UK pensions system up to date and to make sure that after a lifetime of hard work people do not arrive at retirement certain to depend on income-related benefits. We are determined to ensure that everyone has a decent income in retirement and these objectives are at the heart of the Pensions Green Paper we published in December.
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26. Mr. Campbell-Savours:
To ask the Secretary of State for Social Security what recent representations he has received from landlords on the reform of housing benefit. [88052]
Angela Eagle:
I have received representations from landlords on a number of aspects of Housing Benefit. I welcome these representations. It is important that we understand the effect of Housing Benefit on landlords as well as tenants, as we consider proposals to reform the system.
27. Mrs. Roe:
To ask the Secretary of State for Social Security what recent representations he has received on his proposals for reform of the benefits system. [88053]
Mr. Timms:
We have received numerous representations on our recent proposals for reform from organisations, academic bodies, MPs and members of the public towards our central aim of work for those who can and security for those who cannot. Over 4,000 responses have been received in total to formal consultation exercises on welfare reform since March 1998.
29. Mr. Simon Hughes:
To ask the Secretary of State for Social Security when and how he last assessed the minimum income needed by (a) young people, (b) single people, (c) couples, (d) pensioners, (e) people with disabilities and (f) people with dependants; and how his conclusions relate to social security rates. [88056]
Angela Eagle:
Benefit rates are reviewed annually. Our welfare reform programme aims to tackle the root causes of poverty, help people to earn a decent income through work and provide security for those unable to work. We have introduced improvements in benefits for pensioners through the Minimum Income Guarantee, and announced plans for a new Disability Income Guarantee. We have also increased support for families with children through the tax and benefit systems.
30. Mr. Dismore:
To ask the Secretary of State for Social Security if he will make a statement on the level of support given to children with disabilities. [88057]
Mr. Bayley:
The level of financial support given to a disabled child is dependent upon the circumstances of the case. There is a wide range of financial assistance available which contributes towards the extra costs faced by families of disabled children and which includes:
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31. Dr. Naysmith:
To ask the Secretary of State for Social Security what plans he has to help the poorest pensioners; and if he will outline a timetable for introducing the new measures. [88058]
Mr. Timms:
We have already announced that next April the minimum income guarantee, delivered through Income Support, will rise in line with earnings, demonstrating our determination that the least well-off pensioners should share in rising national prosperity.
We are currently considering options for encouraging more pensioners to claim the Income Support they are entitled to. We are also looking at ways in which the rules on the treatment of savings can be changed to better reward those pensioners who have managed to save a modest amount for their retirement.
We will be bringing forward our plans on these measures in due course.
32. Mr. Hope:
To ask the Secretary of State for Social Security what plans he has to assist mothers with the costs of maternity. [88059]
Mr. Bayley:
We are extending Maternity Allowance to women who earn £30 a week or more and increasing it for self-employed women, who currently receive less benefit than employed women.
The existing Social Fund Maternity Payment will be replaced with a Sure Start Maternity Grant from April 2000 and doubled from £100 to £200 for each child.
These improvements will give low-earning mothers-to-be some financial help towards the costs of a new baby, enable them to take their full entitlement to maternity leave and help them achieve a better balance between work and family life.
33. Sir Teddy Taylor:
To ask the Secretary of State for Social Security how many persons had their invalidity benefit cancelled in the most recent annual period for which figures are available. [88060]
Mr. Bayley:
I refer the hon. Member to the written answer I gave to my hon. Friend the Member for Tooting (Mr. Cox) on 31 March 1999, Official Report, column 839.
Mr. Webb:
To ask the Secretary of State for Social Security what proportion of the proposed 1 per cent. maximum charge for stakeholder pensions is intended to cover the costs of advice. [88051]
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Mr. Timms:
We want to set the overall charge limit at a level which will, over time, allow stakeholder pension schemes to meet the cost of delivering a number of services, including information and basic advice, to potential members. These costs are likely to vary from scheme to scheme and it would not be sensible to specify what proportion of the charge should be used to provide each element.
the contributory Basic State Pension, increased at least in line with prices, will remain the key building block of the pension system.
the Minimum Income Guarantee, delivered through Income Support, which will provide an income floor below which no pensioner without savings will fall, and we aim to uprate that guarantee in line with earnings as resources permit. The new Minimum Income Guarantee will form the target which we want people to beat through their pension provision and they will do that in different ways.
a new State Second Pension to replace SERPS. State Second Pension will ensure that everybody who has worked and contributed throughout their working lives will have an income on retirement above the level of the Minimum Income Guarantee. People caring for a disabled person or bringing up children aged five and under, and disabled people with broken work records, will get credits for State Second Pension.
Stakeholder Pension schemes, which will provide good value, reliable funded pensions for people for whom no suitable funded scheme is available.
We believe that for most people on moderate and higher incomes it is a funded pension that offers them the best prospects for their income in retirement and that is why we are determined to ensure that those people who today can save for their retirement have the framework in which to do so. Stakeholder Pension schemes will combine the low overheads and high security of occupational pensions with the flexibility of the best of personal pensions, and will be available to all. They will be particularly designed to help those on middle incomes, those earning roughly between £9,000 and £20,000 a year, but will benefit those on higher incomes as well. Once secure low-cost value for money Stakeholder Pension Schemes have become established, we expect the State Second Pension will no longer be earnings-related but paid at a flat rate.
Disability Living Allowance which provides a contribution towards the extra costs incurred because of the effects of disability. The Welfare Reform and Pensions Bill, currently before Parliament, provides that the age limit for entitlement to the higher rate mobility component of Disability Living Allowance will be lowered to the age of three, giving help to an additional 8,000 children.
Within Income Support, income based Jobseeker's Allowance, Housing Benefit and Council Tax Benefit, groups identified as likely to have extra expenses receive help through the disability premium structure. The new Disability Income Guarantee will
provide extra help in these premiums for families with disabled children getting the highest rate of the care component of Disability Living Allowance.
Help is also available from the Family Fund Trust. This is funded by the UK Health Departments and has been allocated over £24 million for 1999-2000. It provides grants to low-income families with severely disabled children to enable them to continue to care for them at home.
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