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Company Pensions

Mr. Browne: To ask the Secretary of State for Social Security if he will assess the benefits of introducing a pension fund safety net, similar to the Redundancy Payments Fund, to protect the pensions of employees whose pensions have been affected detrimentally by the insolvency of their employer. [150700]

Mr. Rooker: The consultation exercise on the paper "Security for Occupational Pensions" closed on 31 January. This consultation document sought views on a range of approaches to providing protection for pension scheme members' rights, including options such as a central discontinuance fund, compulsory scheme insurance as well as other possible measures. We are giving careful consideration to the responses received and will then decide on the best way forward.

Mr. Browne: To ask the Secretary of State for Social Security what provisions are in place to protect employees whose pensions have been affected detrimentally by the insolvency of their employer. [150919]

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Mr. Rooker: The Pensions Act 1995 brought in a number of measures to promote security for members of pension schemes, including the Minimum Funding Requirement which requires defined benefit schemes to hold a minimum level of assets to meet their liabilities.

In the event of a sponsoring employer's insolvency, the legislation requires that an independent trustee must be appointed. The role of the independent trustee is to ensure that the interests of the members are represented in insolvency proceedings and to make any necessary decisions about winding up the scheme. If on wind up the scheme is not fully funded on a Minimum Funding Requirement basis, the amount outstanding becomes a debt on the employer and the trustee must pursue recovery of this amount. Where the scheme finds itself in deficit due to fraud, compensation may be payable under the Pensions Compensation Scheme. Unpaid employer and employee contributions may be payable from the National Insurance fund through the Department of Trade and Industry's Redundancy Payments Service.

Mr. Browne: To ask the Secretary of State for Social Security what plans he has to extend the powers of OPRA, or other relevant regulators, to require them to ensure the timeous winding up of company pension funds when the employer has become insolvent. [150697]

Mr. Rooker: We have extended and strengthened OPRA's powers with regard to schemes that have started to wind-up (including cases where the sponsoring employer is insolvent). There are a number of provisions in the Child Support, Pensions and Social Security Act 2000, under which draft regulations will be issued later this year to come into effect in April 2002.

Mr. Browne: To ask the Secretary of State for Social Security if he will review the performance of companies who manage company pension schemes; and if he will publish the results. [150699]

Mr. Rooker: We have no plans to review the performance of companies that sponsor pension schemes. The performance of companies in general is a matter for their shareholders.

Under the provisions of the Pensions Act 1995, pension schemes are required to have a schedule setting out the levels of contributions and the times when contributions should be paid. Companies are required to pay contributions in accordance with these schedules. If an employer fails to comply with the schedule this must be notified to the Occupational Pensions Regulatory Authority (OPRA) who can, in certain circumstances, apply sanctions. If an employer fails to pay employee contributions within a set time OPRA can apply a civil or even criminal sanction on the employer.

Departmental Policies (Clwyd, South)

Mr. Martyn Jones: To ask the Secretary of State for Social Security if he will set out, with statistical information relating as directly as possible to the Clwyd, South constituency, the effects on Clwyd, South of his Department's policies and actions since 2 May 1997. [150909]

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Mr. Rooker: The Department's policies and initiatives have made a significant contribution to the Government's overall objectives of:

Eradicating child poverty in 20 years, and halving it within 10;

Promoting work as the best form of welfare for people of working age while protecting the position of those in greatest need; and,

Combating poverty and promoting security and independence in retirement for today's and tomorrow's pensioners.

These goals are being pursued nationwide and our achievements are set out in our annual "Opportunity for all" reports. Our second report, "Opportunity for all--One year on: making a difference" (CM 4865, September 2000) sets out what progress has been made in the past year, as well as highlighting what more needs to be done. Nationwide statistical information is necessarily more complete than constituency level data, but the following provides a comparative guide to the effect of the Department's policies and actions in Clwyd, South since May 1997.

Measures in our first four Budgets will lift over one million children out of poverty. These include record increases to Child Benefit, Working Families Tax Credit, increases in the income-related benefits, the minimum wage and tax changes.

Child benefit will be worth £15.50 a week for the eldest child and £10.35 a week for other children from April 2001: nationally about 7 million families receive child benefit, and in Clwyd, South 8,101 families benefit.

We now have the lowest unemployment rate in 25 years. The New Deals have helped lone parents, the young unemployed, the long-term unemployed, the over 50s and partners of the unemployed to move from benefit into work. In the period since May 1997, the number of people claiming Jobseeker's Allowance nationally has reduced from 1,562,400 to 1,044,900; in Clwyd, South the number has reduced from 1,400 to 1,000. Since May 1997, the number of lone parents who claim Income Support has decreased from 1,013,500 to 894,100 nationally and in Clwyd, South from 1,200 to 700.

Older people are disproportionately affected by fuel poverty, so we have introduced Winter Fuel Payments to help with their heaviest fuel bill. This winter, the payment is £200 for households who qualify. Around 14,000 older people in Clwyd, South have received a Winter Fuel Payment for this winter.

To demonstrate our commitment to combating pensioner poverty, this year we will spend £4.5 billion extra in real terms on pensioners. Some 12,100 pensioners in Clwyd, South will benefit from the substantial increases in the basic state pension this April and next; this year's increase is £5 a week for single pensioners and £8 for couples. In addition we have introduced free TV licences for the over 75s of whom we estimate there are about 4,600 in Clwyd, South. 2,400 pensioner families in Clwyd, South are receiving the Minimum Income Guarantee, which we introduced in April 1999 to help our poorest pensioners. From April they will be at least £15 a week, or £800 a year, better off in real terms as a result of Government measures since 1997.

Other reforms in the pipeline include: the new Pension Credit in 2003 designed to ensure that pensioners benefit from their savings; the launch of Stakeholder Pensions in

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April this year; and the introduction of the State Second Pension in April 2002 both of which will help provide greater security for tomorrow's pensioners.

Departmental Policies

(Blackpool, North and Fleetwood)

Mrs. Humble: To ask the Secretary of State for Social Security if he will set out, including statistical information, the effect on the Blackpool, North and Fleetwood constituency of his Department's policies and actions since 2 May 1997. [150718]

Mr. Rooker: The Department's policies and initiatives have made a significant contribution to the Government's overall objectives of:

Eradicating child poverty in 20 years, and halving it within 10;

Promoting work as the best form of welfare for people of working age while protecting the position of those in greatest need; and,

Combating poverty and promoting security and independence in retirement for today's and tomorrow's pensioners.

These goals are being pursued nationwide and our achievements are set out in our annual "Opportunity for all" reports. Our second report, "Opportunity for all--One year on: making a difference" (CM4865, September 2000) sets out what progress has been made in the past year, as well as highlighting what more needs to be done. Nationwide statistical information is necessarily more complete than constituency level data, but the following provides a comparative guide to the effect of the Department's policies and actions in Blackpool North and Fleetwood since May 1997.

Measures in our first four Budgets will lift over one million children out of poverty. These include record increases to Child Benefit, Working Families Tax Credit, increases in the income-related benefits, the minimum wage and tax changes.

Child benefit will be worth £15.50 a week for the eldest child and £10.35 a week for other children from April 2001: nationally about 7 million families receive child benefit, and in Blackpool, North and Fleetwood 11,025 families benefit.

We now have the lowest unemployment rate in 25 years. The New Deals have helped lone parents, the young unemployed, the long-term unemployed, the over 50s and partners of the unemployed to move from benefit into work. In the period since May 1997, the number of people claiming Jobseeker's Allowance nationally has reduced from 1,562,400 to 1,044,900; in Blackpool, North and Fleetwood the number has reduced from 3,000 to 1,600. Since May 1997, the number of lone parents who claim Income Support has decreased from 1,013,500 to 894,100 nationally and in Blackpool, North and Fleetwood from 1,700 to 1,300.

Older people are disproportionately affected by fuel poverty, so we have introduced Winter Fuel Payments to help with their heaviest fuel bill. This winter, the payment is £200 for households who qualify. Around 25,000 older people in Blackpool, North and Fleetwood have received a Winter Fuel Payment for this winter.

To demonstrate our commitment to combating pensioner poverty, this year we will spend £4.5 billion extra in real terms on pensioners. Some 23,600 pensioners in Blackpool, North and Fleetwood will benefit from the

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substantial increases in the basic state pension this April and next; this year's increase is £5 a week for single pensioners and £8 for couples. In addition, we have introduced free TV licences for the over 75s of whom we estimate there are about 10,200 in Blackpool, North and Fleetwood. 3,700 pensioner families in Blackpool, North and Fleetwood are receiving the Minimum Income Guarantee, which we introduced in April 1999 to help our poorest pensioners. From April they will be at least £15 a week, or £800 a year, better off in real terms as a result of Government measures since 1997.

Other reforms in the pipeline include: the new Pension Credit in 2003 designed to ensure that pensioners benefit from their savings; the launch of Stakeholder Pensions in April this year; and the introduction of the State Second Pension in April 2002 both of which will help provide greater security for tomorrow's pensioners.

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