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Child Support

Mr. Webb: To ask the Secretary of State for Social Security if he will list each of the categories of family that will be worse off as a result of the child support measures contained in the Child Support, Pensions and Social Security Bill; if he will list in each case the number of (a) families and (b) children so affected; and if he will estimate the average loss for each group. [104141]

Angela Eagle: The impact of the child support reforms will depend on a number of different factors, including the level of child support liability, whether this liability is being paid and whether the parent with care is on benefit. Over one million children will benefit from the reforms. However, in order to forecast which individual families are likely to be better or worse off as a result of the changes, we would need to establish the extent to which the non-resident parent is compliant now and estimate future compliance. We have not made such estimates; these could be provided only at disproportionate cost and we are not confident that the results would be reliable.

It is inevitable that there will be differences in liability between the current and the new schemes. Under the new scheme we will get more parents paying more of what is due for their children. Payments of maintenance are already fully ignored in Working Families Tax Credit. Parents with care on Income Support will see the benefit of maintenance for the first time. They will gain up to £10 a week through the introduction of the new child maintenance premium. The payment of regular, reliable maintenance will also form a foundation on which parents with care can consider options for work.

Mr. Webb: To ask the Secretary of State for Social Security what estimate he has made of the likely completion date of the computer system being prepared for the Child Support Agency; and if it is his policy not to implement the new maintenance formula contained in the Child Support, Pensions and Social Security Bill until that computer system is in place. [104139]

Angela Eagle: We have always made clear that we intend to introduce the new child support system as soon as possible, but that will not be before the end of 2001 at the earliest. We are determined not to repeat the failures of the current system by introducing reforms too quickly or before new IT systems are ready.

State Second Pension

Mr. Webb: To ask the Secretary of State for Social Security if he will estimate, for each of the 10 financial years starting from 2003-04, (a) expenditure on SERPS if the state second pension were not to be introduced,

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(b) expenditure on SERPS if the state second pension were to be introduced, (c) expenditure on the state second pension, assuming implementation in 2003-04 and a move to a flat rate scheme in 2008-09 and (d) the additional cost of national insurance rebates to those earning less than £9,000 per annum on each of the two alternative regimes proposed in his recent consultation document. [104140]

Mr. Rooker: The information is contained in the following tables. It is based on the assumptions that the State Second Pension will be introduced in April 2002 and that it will move to a flat-rate scheme in 2006-07 (five years after Stakeholder Pension Schemes are introduced). Costings based on introduction of the State Second Pension in April 2003 and a move to a flat-rate scheme in 2008-09 are not available at this time.

All figures are expressed in 1999-2000 price terms and are rounded to the nearest £0.1 billion. The Low Earnings Threshold in State Second Pension is set at £9,500 pa for that year.

Expenditure on SERPS if the State Second Pension were not introduced

	£ billion
2002-03	5.8
2003-04	6.2
2004-05	6.6
2005-06	7.0
2006-07	7.4
2007-08	7.8
2008-09	8.2
2009-10	8.6
2010-11	8.9
2011-12	9.2

Expenditure on SERPS if the State Second Pension were to be introduced in April 2002

	£ billion
2002-03	5.7
2003-04	6.2
2004-05	6.6
2005-06	7.0
2006-07	7.3
2007-08	7.7
2008-09	8.0
2009-10	8.3
2010-11	8.6
2011-12	8.8

Expenditure on the State Second Pension, if introduced in April 2002 and followed by a move to a flat-rate scheme in 2006-07

	£ billion
2002-03	0
2003-04	0
2004-05	0
2005-06	0.1
2006-07	0.2
2007-08	0.3
2008-09	0.5
2009-10	0.6
2010-11	0.8
2011-12	1.0

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The additional cost of national insurance rebates to those earning less than £9,500 pa based on the first approach contained in the recent consultation document The Structure of Rebates for the State Second Pension

	£ billion
2002-03	0.1
2003-04	0.2
2004-05	0.2
2005-06	0.2
2006-07	0.3
2007-08	0.3
2008-09	0.3
2009-10	0.3
2010-11	0.3
2011-12	0.3

Note:

These extra rebates are for those contracted-out of the State Second Pension via Contracted-Out Salary Related schemes, Contracted-Out Money Purchase schemes and Appropriate Personal Pension schemes. The figures do not include additional rebates paid to people earning between £9,500 and £21,600

The additional cost of national insurance rebates to those earning less than £9,500 pa based on the second approach contained in the consultation document

	£ billion
2002-03	0
2003-04	0.1
2004-05	0.1
2005-06	0.1
2006-07	0.1
2007-08	0.1
2008-09	0.2
2009-10	0.2
2010-11	0.2
2011-12	0.2

Note:

These extra rebates are for those contracted-out of the State Second Pension via Appropriate Personal Pension schemes. The figures do not include additional rebates paid to people earning between £9,500 and £21,600 between £9,500 and £21,600

Stakeholder Pensions

Mr. Fitzpatrick: To ask the Secretary of State for Social Security what progress has been made in developing proposals for stakeholder pensions. [104429]

Mr. Darling: Stakeholder pensions are intended to fill the gap for the many people who can afford to save for their retirement but do not currently have a suitable means of doing so. Following passage of the Welfare Reform and Pensions Act 1999, which sets the framework for stakeholder schemes, and extensive consultation on the detailed arrangements, we have now made decisions in a number of key areas. I am placing in the Library the Government's response to the consultation. The paper, "Stakeholder Pensions--Outcome of the Consultation" is also available in the Vote Office. The main points are:

Schemes will only be able to charge in one way, on the value of the member's fund, and will not be allowed to charge more than 1 per cent. a year. No extra charges can be made if the member stops paying in, or wishes to transfer to another scheme.

Schemes will accept any contributions of £20 or more.

Schemes must provide information and explanatory material to potential members, but will not be required to offer individual financial advice within the 1 per cent. charge. Schemes may provide individual advice within the charge limit if they wish, or charge a separate fee.

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Schemes will be able to set up with a board of trustees, or can be run by an authorised stakeholder scheme manager.

Employers will generally be required to give access to a stakeholder scheme from October 2001, unless they already offer a suitable alternative. Employers with fewer than five staff will initially be exempt from this requirement, but the arrangement will be reviewed in three years' time. Employers who arrange group personal pensions and who make a contribution of at least 3 per cent. of earnings will also initially be exempt, subject to review after three years.

Existing rebates for Contracted-out Money Purchase Schemes and Appropriate Personal Pension schemes will apply to stakeholder pension schemes.

Specific requirements will be incorporated in secondary legislation, on which we shall consult in draft shortly.

BA Security and Investigation Service

Mr. Field: To ask the Secretary of State for Social Security (1) how many staff BASIS have employed in each area for each of the last 12 months; [103482]

(2) what is the full complement of staff at each BASIS office and on 1 December how many of these posts were vacant; [103483]

(3) how many BASIS staff at each area office have been with BASIS for 12 months or more. [103485]

Mr. Rooker: The information is in the tables.

Number of staff BASIS have employed in each area for each of the last 12 months

	Business Development Team	Southern	Northern	National Intelligence
1998
December	33	144	83	28
1999
January	33	143	83	27
February	31	146	83	31
March	33	143	82	31
April	34	138	79	39
May	34	139	79	44
June	37	138	77	44
July	34	139	76	43
August	33	154	74	50
September	34	143	73	52
October	32	148	71	53
November	35	147	74	57

Numbers for the full complement of staff at each BASIS office and the number of vacancies

Office/Team	Full complement	Staff in post	Vacancies
	Business Development Team (BDT):
BDT	34	35	0
Southern area:
Nottingham	19	17	2
Birmingham	19	17	2
Cardiff	19	15	4
London:
Team 1	21	21	0
Team 2	21	16	5
Team 3	21	14	7
Team 4	21	14	7
Team 5	21	15	6
Team 6	21	16	5
Northern area:
Scotland	19	16	3
Newcastle	19	12	7
Leeds	19	18	1
Manchester	19	18	1
Liverpool	19	10	9
National Intelligence Unit:
Identity Fraud Management Unit	26	21	5
Financial Investigation Unit	5	3	2
Giro Validation	16	6	10
National Intelligence Unit	29	27	2
Totals	388	311	(15)78

(15) A further recruitment exercise was carried out throughout October and November 1999. The interviews will be taking place in the next few weeks with a view to filling the vacancies.

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Numbers of BASIS staff at each area office who have been with BASIS for 12 months or more

Team	Number
Business Development Team	15
Southern	99
Northern	53
National Intelligence	15

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