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24 Feb 2003 : Column 198W—continued
Pension Service
Mr. Webb: To ask the Secretary of State for Work and Pensions what specialist training is given to those working in Pension Service call centres. [98107]
Mr. McCartney: Training for staff in the new Pension Service Pension Centres is designed to ensure that they have the knowledge and skills needed to provide a high-quality service to Pension Service customers. The training covers various themes, depending on each individual member of staff's role, including: customer service, IT/telephony, business procedures and management.
State Pensions
Mr. Laws: To ask the Secretary of State for Work and Pensions what his estimate is of the cost of increasing the basic state pension by (a) £5 per week, (b) £10 per week, (c) £15 per week, (d) £20 per week, and (e) to £100 per week, for (i) all pensioners, (ii) pensioners of age 75 and over, and (iii) pensioners of age 80 and over. [97366]
Mr. McCartney: The information requested is set out in the tables.
| £5 per week | £10 per week | £15 per week | £20 per week | |
|---|---|---|---|---|
| All pensioners | 1.5 billion | 3 billion | 4.6 billion | 6.2 billion |
| Pensioners aged 75 and over | 800 million | 1.5 billion | 2.3 billion | 3 billion |
| Pensioners aged 80 and over | 400 million | 800 million | 1.2 billion | 1.6 billion |
Notes:
1. Estimates are in cash terms for Great Britain and are rounded to the nearest £100 million.
2. The estimates take account of offsetting savings in income related benefits. Income related benefit offsets are calculated using the Department for Work and Pensions Policy Simulation Model for 2003–04.
3. Calculations assume the maximum rate payable of the basic state pension is increased by the amounts specified and all other payments proportionately.
4. For modelling purposes, pension credit is assumed to be in place throughout 2003–04. In fact, pension credit will begin in October 2003.
| £ billion | |
|---|---|
| All pensioners | 7 |
| Pensioners aged 75 and over | 3.4 |
| Pensioners aged 80 and over | 1.9 |
Notes:
1. Estimates are in cash terms for Great Britain and are rounded to the nearest £100 million.
2. The estimates take account of offsetting savings in income related benefits. Income related benefit offsets are calculated using the Department for Work and Pensions Policy Simulation Model for 2003–04.
3. Calculations assume the maximum rate payable of the basic state pension is increased by the amounts specified and all other payments proportionately.
4. For modelling purposes, pension credit is assumed to be in place throughout 2003–04. In fact, Pension credit will begin in October 2003.
Pensions Green Paper
Mr. Frank Field: To ask the Secretary of State for Work and Pensions if he will set out the basis for the calculation of page 5 of the Green Paper "Simplicity, Security and Choice", that the simplification proposals in the Green Paper could save employers £150-£200 million per year. [90825]
Mr. McCartney: The basis for the calculation can be found on page 129 of the green paper "Simplicity Security and Choice: Working and Saving for Retirement."
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Mr. Frank Field: To ask the Secretary of State for Work and Pensions if he will set out the basis of the calculation given in the Green Paper on pensions "Simplicity, Security and Choice: Working and Saving for Retirement", that there has been a 40 per cent. increase in pension contributions since 1997. [90826]
Mr. McCartney: The increase in pension contributions since 1997 was calculated using the estimated value of contributions to private pension schemes from the Office for National Statistics, and deflating by the Retail Prices Index (RPI).
The data used for the calculation are set out in the table.
| Estimated contributions to private pension schemes(49) | RPIX index (13 January 1987 equals 100.0) | Estimated contributions to private pension schemes(50) | |
|---|---|---|---|
| 1997 | 33.1 | 157.5 | 36.4 |
| 1998 | 37.3 | 162.9 | 39.7 |
| 1999 | 42.3 | 165.4 | 44.3 |
| 2000 | 47.5 | 170.3 | 48.3 |
| 2001 | 49.9(51) | 173.3 | 49.9 (51) |
(49) £ billion, current prices.
(50) £ billion, 2001 prices.
(51) Provisional.
Contributions to private pension schemes have been calculated using the methodology outlined in the letter from the National Statistician to the right hon. Member for Fylde (Mr. Jack) on 29 October 2002, PQ 77826, Official Report, column 689W.
The estimates are consistent with those published in both Annexe B table 1 of the Review of Pension Contributions Statistics and the ONS Blue Book for 2002. The Review of Pension Contribution Statistics suggested that until the full implementation of the recommendations of the review, these are the best estimates for pension contributions statistics.
Personal Pension Plans
Miss McIntosh: To ask the Secretary of State for Work and Pensions if he will make a statement on the guidance which he gives on funding for personal pension plans. [98061]
Mr. McCartney: As the Green Paper 'Simplicity, security and choice: working and saving for retirement' (CM 5677) states that the decisions over how much pension an individual should have depends on their individual preferences and circumstances. Therefore, it is not appropriate for the Government to seek to stipulate the level of income that any particular person will need in retirement, and consequently the additional saving any one individual should make.
We are committed, however, to actively encouraging people to consider their pension saving options early so that they have as clear a view as possible of their own pension funding needs. The Green Paper, sets out the Government's proposals to work with employers and the financial services industry to provide:
A simple framework to help people understand their choices; Financial education and awareness to navigate the system, including access to generic financial advice
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for the mass market; Personalised information tailored to individual circumstances, so people can make informed choices; and a choice of suitable products.
We are already running a pension education publicity campaign to make people aware of the importance of saving for retirement. The campaign is supported by a range of guides that provides information on pensions options. The current phase of activity started on 8 February 2003. In time, we plan to move the campaign forward from awareness so that it is more focused on taking action.
In addition, we have already introduced measures to inform individuals of the level of pension they can expect when they save in a personal pension. New regulations that come into force in April require money purchase pension schemes (occupational, personal and stakeholder) to give members an annual illustration of what their pension might be when they require. This will give them important information about how theirpension plan is progressing.
The Green Paper, therefore, sets out proposals for building on work that has already been done, as well as identifying new initiatives, in order to provide a coherent education and information effort. This will enable individuals to make choices as to the level of funding for their personal pensions.
Benefit Fraud
David Davis: To ask the Secretary of State for Work and Pensions what recent assessment he has made of benefit fraud in the East Riding of Yorkshire. [96711]
Malcolm Wicks: Our most recent estimate is that £2 billion is lost annually through benefit fraud in Great Britain. This estimate cannot be broken down for individual areas.
Post Office Card Accounts
Norman Lamb: To ask the Secretary of State for Work and Pensions if he will make a statement on the issue of personal invitation documents to benefits customers in respect of Post Office card accounts; why the issue of personal invitation documents was delayed from 5 January 2003 until 24 March; and what estimate he has made of the likely impact of the delay on the number of benefits claimants signing up to card accounts in time for the launch on 1April. [97373]
Malcolm Wicks [holding answer 11 February 2003]: The Government has made clear that we will only accept the Post Office card account service once further testing and proving has shown that the Post Office can provide a reliable and robust system delivering high levels of customer service. We have been continually reviewing and refining our plans to issue Personal Invitation Documents, and will gradually start to issue them once we are sure the Post Office can deliver the required level of service.
None of this affects people's choices. Customers will choose the account that best meets their needs and circumstances. The arrangements for issuing Personal Invitation Documents will not affect this choice—customers opting for a card account will simply be kept
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on their current method of payment (order book or giro) until they have been issued a Personal Invitation Document and then successfully opened a card account.
Mr. Robathan: To ask the Secretary of State for Work and Pensions what assessment he has made of how housebound pensioners and others will be able to use a Post Office card account without giving their PIN to a carer. [97669]
Malcolm Wicks: Customers with a Post Office card account can, if they wish, nominate someone else to have permanent access to their account and collect their money for them. In these cases a second card with a separate PIN will be issued for use by the person nominated by the customer. The Post Office card account is not the only option available. Some housebound pensioners may find that a bank account, which may offer services such as phone or Internet banking, may be better to meet their personal needs.
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