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Pension Service

20. David Cairns: To ask the Secretary of State for Work and Pensions what plans he has to ensure that the Pension Service can provide a local service to older and housebound pensioners. [55507]

Mr. McCartney: A key aim of the Pension Service is to provide an excellent customer service by making use of the advances in new technology. This will be done through our contact centres. Customers can access us easily through a simple range of telephone numbers, and can get their claims and queries dealt with quickly by trained experts who understand state pensions and the needs of their customers.

We fully recognise that not everyone can access the service using the telephone, post or internet—and for those customers there will be a community-based local service.

The local service is being introduced on a phased basis from 1 April 2002 and will be in place nationwide by October 2002. It will be made up of two key elements. A direct local service, providing support directly to customers which will include a targeted visiting service both in the home and at third party locations, and a 'drop in' surgery service for outreach and take up activities, and partnership services provided with partners such as local authorities and voluntary sector organisations.

In the meantime, customers should continue to deal with their local social security office until the national service is in place.

23. Mr. Wyatt: To ask the Secretary of State for Work and Pensions what improvements in service he expects there to be from the new Pension Service. [55511]

Mr. McCartney: The Pension Service, formally launched on 1 April 2002, will provide a modern, efficient and customer focused service, dedicated to combating poverty and encouraging saving for both today's and future pensioners.

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It will comprise centralised pension centres working with an improved local service nationwide which will operate in the community working with local partners to provide face to face contact for pensioners.

A key aim of The Pension Service is to provide an excellent customer service by making use of the advances in new technology. This will be done through our contact centres. Customers can access us easily through a simple range of telephone numbers, and can get their claims and queries dealt with quickly by trained experts who understand state pensions and the needs of their customers.

We fully recognise that not everyone can access the service using the telephone, post or internet—and for those customers there will be a community based local service.

The local service is being introduced on a phased basis from 1 April 2002 and will be in place nationwide by October 2002. It will be made up of two key elements. A direct local service, providing support directly to customers which will include a targeted visiting service both in the home and at third party locations, and a 'drop in' surgery service for outreach and take up activities; and partnership services provided with partners such as local authorities and voluntary sector organisations.

The new Pension Service sees a key shift in emphasis from processes to people: their needs, what they want and the way they want it delivered. This improved service will be rolled out over the next few years. In the interim, our customers will continue to deal with their existing social security offices until they are contacted in writing about the new arrangements.

32. Mr. Dismore: To ask the Secretary of State for Work and Pensions if he will make a statement about the assistance ethnic minority pensioners will receive with their claims through the Pension Service. [55520]

Mr. McCartney: The Pension Service will provide a service tailored to the needs of all its customers, including those from ethnic minority backgrounds and people with disabilities.

As part of our commitment to ensure that we provide the best possible service we have facilities which enable customers to access the Language Line—a telephone interpreting service covering over 150 languages. We also produce leaflets in a wide range of languages. Our services are also available in Welsh.

The pension centres and local service will also offer a full service to customers with disabilities. For those people with impaired hearing we can offer Typetalk, BT TextDirect and the services of sign language interpreter if required. Many of our written communications are available on request in Braille, audio cassette, e-mail and large print.

The local service will establish close links with organisations representing different groups to ensure we meet the needs of the community.

Minimum Income Guarantee

21. Mr. Pike: To ask the Secretary of State for Work and Pensions how many pensioners are in receipt of minimum income guarantee in (a) England and (b) the north-west. [55509]

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Mr. McCartney: Over 2 million pensioners benefit from the minimum income guarantee (MIG). These pensioners are on average £20 a week better off. In the north-west Government office region, nearly 250,000 pensioners were in receipt of the MIG, 3,200 of these live in the Burnley constituency.

To help meet our aim of tackling pensioner poverty, we have introduced a new Pension Service. It will provide a modern, efficient and customer focused service for both today's and future pensioners.

It will comprise centralised pension centres working with an improved local service nationwide which will operate in the community working with local partners to provide face to face contact for pensioners.

This improved service will be rolled out over the next few years. In the interim, our customers will continue to deal with their existing social security offices until they are contacted in writing about the new arrangements.

Our pension centre in Burnley has been up and running since February 2002 and has created some 300 new job opportunities in the region.

22. David Taylor: To ask the Secretary of State for Work and Pensions what recent assessment he has made of how many eligible pensioners failed to apply for minimum income guarantee in the year to 31 March. [55510]

Mr. McCartney: Over two million pensioners benefit from the MIG and are on average £20 per week better off.

The latest figures for the number of pensioners who may be entitled to but are not claiming the minimum income guarantee are available in the Library ¹ . Estimates for pensioners are subject to greater uncertainty than other published take up estimates; research is under way to improve the precision of take up estimates.

Around 1,900 pensioners in the north-west Leicestershire constituency are receiving the minimum income guarantee, and around 16,940 winter fuel payments were made last winter.

¹ Income Related Benefits—Estimates of Take Up 1999–2000.

Labour Market

24. Mr. Jenkins: To ask the Secretary of State for Work and Pensions if he will make a statement on recent trends in the labour market. [55512]

Mr. Nicholas Brown: There are problems in the world economy, but the UK is withstanding these better than other major countries.

Employment is at a record level of 28.42 million, growing by 172,000 over the last year and by more than 1.5 million since 1997.

Claimant unemployment is under 953,000, its lowest level since 1975, down by more than 24,000 over the last year and by more than half a million since 1997. For the first time in half a century we have the lowest International Labour Organisation (ILO) unemployment rate of any of the major industrialised countries.

Building on the foundation of a strong and stable economy, the Department's policies have played an important part in this success. For example, the New Deals have helped well over 600,000 people off benefits

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and into work, and Action Teams for Jobs and Employment Zones have, between them, helped over 52,000 people from the country's most deprived areas into jobs.

Means-tested Pensions

26. Mr. Wiggin: To ask the Secretary of State for Work and Pensions what change has taken place in the number of means-tested pensions since 1997. [55514]

Mr. McCartney: For the purposes of this question 'means tested pensions' has been taken to refer to income support and minimum income guarantee. In November 1997 the number of claims to income support was around 1.7 million. In November 2001, the number of claims to income support paid through the minimum income guarantee was around 1.74 million. This benefited over 2 million people.

In the Leominster constituency, around 2,100 pensioners are receiving the minimum income guarantee, and around 21,080 winter fuel payments were made last winter.

Source: Income Support Statistics Quarterly Enquiries, November 1977 and 2001.

27. Dr. Julian Lewis: To ask the Secretary of State for Work and Pensions if he will make a statement on his assessment of trends in the value of funded pensions. [55515]

Mr. McCartney: Figures showing a rise in pension fund assets of £111 billion from 1997 to 2000 were released by the Office for National Statistics on 16 May 2002. They also show that pension fund assets stood at £776 billion in 2000, the latest year for which figures are available.

This shows that the value of pension fund assets remain strong. This is supported by figures given in the answer to the questions asked by the hon. Member for Havant, showing increases in contributions to pension funds of £27 billion from 1997 to 2001.

These figures emphasise that the basic structure of pensions in this country is right. We will continue to build on the changes we've already made, such as the introduction of state second pension, stakeholder pensions and pension Credit which are tackling pensioner poverty and widening pension saving.

And proposals we will make later this year following three wide-ranging reviews of the pension system will make it easier for people to save more for their retirement.

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