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Departmental Twinning

Mr. Mackinlay: To ask the Secretary of State for Social Security how many requests there have been to his Department for placement of officials from Central, East European and CIS states as twins of his officials; how many such officials have been accepted as twins; and from which countries (a) those who were accepted and (b) those who were not accepted came. [94006]

Angela Eagle: I refer my hon. Friend to the written answer from the Minister of State, Foreign and Commonwealth Office, my hon. Friend the Member for Leicester, East (Mr. Vaz) today.

Pensions

Mr. Flynn: To ask the Secretary of State for Social Security what plans he has to ensure that all pensioners receive pension increases which are linked to increases in national prosperity. [93777]

Mr. Rooker: My right hon. Friend the Secretary of State for Social Security is required by law to review the rate of Retirement Pension and other benefits each year. He will announce the outcome later this year in the usual way.

Mr. Webb: To ask the Secretary of State for Social Security if he will estimate, using his PENSIM model, the mean net incomes in 2025 of (a) single pensioners and (b) married pensioners on the basis of (i) unchanged

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policies, (ii) his proposed phased replacement of SERPS with the second state pension and (iii) the phasing out of SERPS coupled with the introduction of an age addition to the basic pension for those aged 80 years or over, set at three quarters of the gap between the basic pension and the minimum income guarantee, assuming in each case the continuation of earnings indexation of the minimum income guarantee; and if he will provide separate estimates for each quintile group of each distribution. [94695]

Mr. Rooker: The information is in the tables:

Net income of single pensioners by quintile in 2025£ per week

Mean	Quintile 1	Quintile 2	Quintile 3	Quintile 4	Quintile 5
Unchanged policies
168.00	85.20	119.70	139.00	172.70	323.50
	After the State Second Pension
169.70	86.50	121.10	140.30	174.70	325.70
After the suggested age addition to the Basic State Pension and phasing out of SERPS
172.00	92.30	124.50	144.40	177.10	321.50

Net income of married pensioners by quintile in 2025

					£ per week
Mean	Quintile 1	Quintile 2	Quintile 3	Quintile 4	Quintile 5
	Unchanged policies
346.70	169.50	221.00	275.30	356.90	710.50
	After the State Second Pension
351.40	172.40	226.00	280.30	362.10	716.00
	After the suggested age addition to the Basic State Pension and phasing out of SERPS
342.20	171.80	224.20	271.30	347.40	695.60

Notes:

1. In order to model option (iii), it is necessary to make further critical assumptions about the current regime for contracting out of SERPS. If this were to cease at the same time that SERPS stops accruing, there would be a significant effect on private pension provision although highly dependent on the behavioural response of individuals and employers. Alternatively, if contracted out rebates continued to be available, there would be a large incentive for those who had previously been in SERPS to take advantage of the rebates, at significant extra cost to the public finances. Again this would depend on behavioural responses, unless private second pensions were made compulsory. The estimates in the table are based on assumptions which avoid the need to model behavioural responses ie those who are already contracted out continue to receive their rebates, whereas those in SERPS have no replacement second pension once SERPS accruals cease. This is not a sustainable set of assumptions in policy terms, but does provide a basis for answering the question as set out.

2. The estimates have been arrived at using the DSS's PENSIM model. PENSIM is a dynamic microsimulation model which projects future pensioners' incomes on the basis of past labour market and pensions information. Because the model is dependent on the assumptions used and the cohort sampled to generate the work and pensions histories, it is primarily a tool to compare policy options rather than to project the future course of pensioners' incomes with accuracy. Results so far into the future, even of a comparative nature, must be treated as broad brush.

3. The quintiles have been derived by dividing each income distribution in to five equal sized groups in ascending order of income size. The first quintile contains the fifth of the distribution with lowest incomes while the fifth quintile contains the fifth with highest incomes.

4. The income figures given are on a benefit unit basis. Therefore, the income of couples is that of both members of the couple combined.

5. Figures are expressed in 1999 prices rounded to the nearest ten pence.

6. Earnings indexation of the minimum income guarantee is assumed. The earnings assumption in the PENSIM model is 1.5 per cent. per year above inflation.

7. The State Second Pension is assumed to be introduced in 2002.

8. The suggested age addition to the Basic State Pension refers to three quarters of the gap between the full basic state pension and the maximum minimum income guarantee of a single person aged 80. It is assumed to be introduced in the year 2000. Under this option, the year 2000 also marks the end of all new SERPS accruals. Existing SERPS entitlements continue to be paid.

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Mr. Trend: To ask the Secretary of State for Social Security (1) what plans he has to seek an amendment to the law to require a stakeholder pension to be taken out in the form of an annuity by a specified age; and if he will make a statement; [94930]

(2) what plans he has to seek an amendment to the law to prevent any pension scheme from requiring a person to take out a pension in the form of an annuity by a specified age; and if he will make a statement. [94929]

Mr. Rooker: Only pension schemes which are not themselves able to pay a pension require their members to take pension benefits in the form of an annuity, so as to guarantee a pension income throughout retirement. We propose that this should also apply to stakeholder pensions. We will consider whether there is a case for changing the present age 75 limit for annuity purchase as part of the review of personal pension income withdrawal being undertaken by the Inland Revenue.

Incapacity Benefit

Mr. Randall: To ask the Secretary of State for Social Security what recent representations he has received on incapacity benefit. [93771]

Mr. Bayley: We have received a number of representations about our proposals to modernise the rules for the Incapacity Benefit. We believe the proposals are right in principle. We have made it clear that we will consider concerns when we finalise the details.

Race Awareness (Tribunals)

Mr. Dismore: To ask the Secretary of State for Social Security if he will make a statement on race awareness training for chairmen of appeal tribunals. [93778]

Angela Eagle: The President of appeal tribunals is responsible for arranging the training of chairmen and members of appeal tribunals. The President intends to arrange for the chairmen and members to be trained in equal opportunities in the next financial year and that the training will include racial and disability awareness issues. The President will write to my hon. Friend setting out his plans for the training.

ONE Service Pilots

Mr. Healey: To ask the Secretary of State for Social Security if he will make a statement on the progress to date of the ONE service pilots. [93752]

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Angela Eagle: The first four ONE pilots were launched as planned in June. They are making good progress in helping people plan ways to become independent, while dealing promptly and accurately with claims to benefit.

A further eight pilots will start on the 29 November. Four will test out the use of Call Centre technology in providing the ONE Service. The other four are led by the Private and Voluntary Sector--they will enable us to test what innovations that they can bring to client services.

Oral Statements

Mr. Mackinlay: To ask the Secretary of State for Social Security if he will list (a) the reports published by his Department and its associated bodies, (b) the reports received from bodies set up by his Department, (c) the decisions his Department has taken and (d) events in the UK and elsewhere, since 27 July, which satisfied the criteria he uses for deciding whether to apply to make oral statements to the House when the House is sitting. [93976]

Mr. Bayley: I refer my hon. Friend to the written answer from my right hon. Friend the President of the Council on 19 October 1999, Official Report, columns 429-30.

This Department has made three announcements since 27 July as follows:

As my hon. Friend, the then Minister of State announced, in response to a Parliamentary Question on 9 June 1999, Official Report, column 340, a series of Consultation Documents would be published on pension reform, the last of which were published on 2 August and 16 September. Copies of the Reports were sent to the Chairman of the Social Security Select Committee and copies were placed in the Libraries of the House of Commons and House of Lords. These were announced publicly by way of a Press Release.

On 21 September we announced the publication of the first annual report on poverty and social exclusion entitled: "Opportunity for All". Copies were placed in the House of Commons and House of Lords Libraries. All MPs were sent a copy of the summary document under cover of a letter and copies were also made available to all key organisations. The Chairman of the Social Security Select Committee also received a copy.

On 26 August we received the CSA Independent Chief Examiner's Report. It was published in the normal way as soon as it was received. Copies of this report were placed in the House of Commons and House of Lords Libraries.

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