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22 Jun 2004 : Column 1306W—continued

Health and Safety Executive (Industrial Dispute)

Mr. Pickthall: To ask the Secretary of State for Work and Pensions what measures he is taking to settle the industrial dispute affecting the Health and Safety Executive and its staff. [179741]

Jane Kennedy: Responsibility for the management of the Health and Safety Executive, including conducting its pay negotiations, is a matter for the Executive of the HSE. I am aware that HSE is very concerned about the dispute and has met with the trade unions and ACAS to try and reach an agreement, resulting in two revised offers to the trade unions. These offers were not accepted and negotiations to resolve the dispute are continuing.

Identity Cards

Mrs. Curtis-Thomas: To ask the Secretary of State for Work and Pensions what uses his Department plans to make of identity cards; and what information would be required through the National Identity database to fulfil these roles. [177850]

Mr. Pond: The Department is currently conducting feasibility work to establish the full impact that the introduction of a national identity card will have on its business; however, by providing a single, effective, national system of establishing identity, an identity card scheme will allow us to simplify several of the Department's current business processes.

For example, we want all people who are eligible for benefits to take up their entitlement, and information on the National Identity Register may allow us more easily to identify those people who may be entitled to claim benefit. In addition, use of an identity card will ensure that the process of establishing identity for benefit claims is both more secure and more convenient for the customer, and we also envisage that the national identity card and its supporting database will be a useful tool in countering identity fraud.
 
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The detail of the information the Department would require will emerge as the National Identity Register is developed. However, as with existing powers relating to exchange of information, the Department will be stringent in the way that any new powers appropriate to the ID card and supporting register are applied.

Income Support

Mr. Oaten: To ask the Secretary of State for Work and Pensions what estimate he has made of the number of people who refuse work because they would receive more on income support. [178229]

Mr. Pond [holding answer 14 June 2004]: The information requested is not available.

Lone parents and sick and disabled people can qualify for income support. We have introduced work-focused interviews enabling everyone on income support to take advantage of the increasing opportunities to move into work by, for the first time, offering everyone of working age advice and guidance on the full range of employment programmes.

The national minimum wage and tax credits encourage people to start work by making it pay for them. Together they guarantee a minimum income in work and provide much improved gains through work. The improvements in gains through work have made a substantial contribution to improving labour market outcomes; for example the employment rate for lone parents has increased from 46 per cent. in 1997 to 53 per cent. this year.

We have announced recent measures in the Budget to further improve gains through work for part time workers. We have introduced a disregard in housing benefit and council tax benefit for all tenants working part time (typically lone parents and disabled people) who are eligible for working tax credit which will make them around £10 per week better off.

We have also introduced a child care disregard in housing benefit which is fully aligned with the child care element of working tax credit. This will improve gains through work for families receiving housing benefit who have child care costs.

New Deal

Tony Lloyd: To ask the Secretary of State for Work and Pensions how many women in Manchester Central have benefited from (a) the New Deal for Lone Parents and (b) the New Deal for Partners since 1997; and if he will make a statement. [177740]

Jane Kennedy: Through the New Deal we have introduced a wide range of initiatives to help individuals improve their employment prospects by giving them the skills, support and confidence they need to move into work. From 12 April we enhanced the New Deal for Partners in order to offer partners taking part in that programme the same level of help and support as our successful New Deal for Lone Parents programme. Also from this April we have started to roll out Work Focused Interviews for Partners, offering greater support to partners of benefit recipients.
 
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1,320 women have started New Deal for Lone Parents in Manchester, Central since the beginning of the programme in October 1998, of whom, 680 have gained a job: Information on the number of women who have benefited from the New Deal for Partners is not available.

Pensions

Dr. Cable: To ask the Secretary of State for Work and Pensions if he will estimate the cost in each of the next 10 financial years from 2006–07, net of savings in means-tested benefits and additional income tax revenues, of paying from April 2006, (a) regardless of contribution record, (b) on the current basis, a basic state pension to (i) all single people aged 80 or above at the rate of the guarantee credit for single people and (ii) all couples where one or both partners is aged 80 or above at the rate of the guarantee credit for couples, with that pension being indexed to earnings in subsequent years, and assuming that the savings credit is abolished for those aged 80 or above. [174110]

Malcolm Wicks: The information is not available in the format requested. However such information as is available is in the table.
£ billion

(a) Net cost (before Tax) regardless of contribution record(b) Net cost (before Tax)
on current system
of entitlement
2006–071.61.5
2007–081.71.7
2008–091.91.8
2009–102.02.0
2010–112.22.1
2011–122.42.3
2012–132.52.5
2013–142.72.6
2014–152.92.8
2015–163.13.0




Notes:
1. The net cost includes all savings except for additional Income tax revenue, (see note (5). Figures are for Great Britain in 2004–05 price terms, using the GDP deflator index, rounded to the nearest £100 million.
2. Basic State Pension (BSP) costs are estimated by the Government Actuary's Department, consistent with Budget 2004 assumptions, made using 2002 based population projections.
3. The savings credit is abolished for those aged 80 and over from April 2006 with no payments to existing pensioners and no new recipients after 2006.
4. The savings from savings credit and other income related benefits (guarantee credit, housing benefit and council tax benefit) are calculated using the Department's policy simulation model for 2006–7. It is assumed that the proportion of savings calculated for the first year is constant for subsequent years.
5. (a) The net cost including tax revenues regardless of contribution record in 2006–07 is £1.3 billion. For illustrative purposes, we have assumed income tax revenue to be a fixed percentage of the gross cost for this option in 2007–08 and 2008–09. Therefore, the illustrative total net cost in 2007–08 is £1.5 billion and in 2008–09 is £1.6 billion. Estimates for later years would be subject to a greater degree of uncertainty.
(b) The net cost including tax revenues on the current system of entitlement in 2006–07 is £1.2 billion. Again we have assumed income tax revenue to be a fixed percentage of the gross cost for this option in 2007–08 and 2008–09. Therefore, the illustrative total net cost in 2007–08 is £1.4 billion and in 2008–09 is £1.5 billion.
(c) Tax revenues have been calculated using the Department's policy simulation model, as this provides information at a household level.
6. (a) All single over 80 year olds have been given the single rate of the guarantee credit and all couples have been given the couples rate of the guarantee credit, split equally between the two, regardless of contribution records.
(b) Category A pensions are increased under existing rules (i.e. relative to the single rate of the guarantee credit) except that in a couple where one person is in receipt of a category B pension, the combined category A and category B pension is increased pro rata relative to the couples rate of the guarantee credit.
(c) In both scenarios couples with only one person over 80 years old are treated identically to those where both are over 80.
7. The State Second Pension is assumed to be unchanged.




 
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Mr. Webb: To ask the Secretary of State for Work and Pensions if he will estimate the cost in each of the 10 financial years from 2006–07, net of savings in means-tested benefits and additional income tax revenues, of paying from April 2006 a basic state pension to all single people aged 70 or above at the rate of the guarantee credit of single people regardless of contribution record and a basic state pension to all couples where one or both partners is aged 70 or above at the rate of the guarantee credit for couples, with that pension being indexed to earnings in subsequent years, and assuming that the savings credit is abolished for those aged 70 or above. [175189]

Malcolm Wicks [holding answer 21 May 2004]: The information is not available in the format requested. However such information as is available is in the table.
Net cost (before tax) regardless of contribution record
2006–076.3
2007–085.8
2008–096.3
2009–106.7
2010–117.2
2011–127.7
2012–138.3
2013–149.0
2014–159.7
2015–1610.4




Notes:
1. The net cost includes all savings except for additional Income tax revenue, (see note 5). Figures are for Great Britain in 2004–05 price terms, using the GDP deflator index, rounded to the nearest £100 million.
2. Basic state pension costs are estimated by the Government Actuary's Department, consistent with Budget 2004 assumptions, made using 2002 based population projections.
3. The savings credit is abolished for those aged 70 and over from April 2006 with no payments to existing pensioners and no new recipients after 2006.
4. The savings from savings credit and other income related benefits (guarantee credit, housing benefit and council tax benefit) are calculated using the Department's policy simulation model for 2006–07. It is assumed that the proportion of savings calculated for the first year is constant for subsequent years.
5. The net cost including tax revenues regardless of contribution record in 2006–07 is £4.6 billion. For illustrative purposes, we have assumed income tax revenue to be a fixed percentage of the gross cost for this option in 2007–08 and 2008–09. Therefore, the illustrative total net cost in 2007–08 is £5.0 billion and in 2008–09 is £5.4 billion. Estimates for later years would be subject to a greater degree of uncertainty. Tax revenues have been calculated using the Department's policy simulation model, as this provides information at a household level.
6. The state second pension is assumed to be unchanged.




 
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Mr. Webb: To ask the Secretary of State for Work and Pensions pursuant to his answer of 4 May 2004, Official Report, column 1461W, on pensions, if he will estimate for each year the gross cost of the reform before taking account of offsetting savings in lower benefit expenditure and higher tax revenues. [175191]

Malcolm Wicks [holding answer 21 May 2004]: The information is provided in the table.
£ billion
2006–075.7
2007–086.2
2008–096.7
2009–107.2
2010–117.8
2011–128.4
2012–139.0
2013–149.7
2014–1510.4
2015–1611.1




Notes:
1. Figures are for Great Britain in 2004–05 price terms, using the GDP deflator index, rounded to the nearest £100 million.
2. Gross basic state pension costs are estimated by the Government Actuary's Department and are consistent with Budget 2004 assumptions and use 2002 based population projections. Basic state pension costs refer to the additional costs after allowing for consequential changes to National Insurance Fund benefits and non-means tested vote benefits.
3. The state second pension is assumed to be unchanged.



Mr. Webb: To ask the Secretary of State for Work and Pensions if he will estimate the cost in each of the next 10 financial years from 2006–07, net of savings in means-tested benefits and additional income tax revenues, of paying from April 2006 a basic state pension to all single people aged 75 or above at the rate of the guarantee credit for single people regardless of contribution record, and a basic state pension to all couples where one or both partners is aged 75 or above at the rate of the guarantee credit for couples, with that pension being indexed to earnings in subsequent years, and assuming that the savings credit is abolished for those aged 75 or above. [170649]

Malcolm Wicks [pursuant to the reply, 4 May 2004, Official Report, c. 1461–62W]: The information is not available in the format requested. However such information as is available is in the table.
£ billion

Net cost (before tax)
2006–073.1
2007–083.4
2008–093.7
2009–104.0
2010–114.3
2011–124.7
2012–135.0
2013–145.4
2014–155.8
2015–166.2




Notes:
1. The net cost includes all savings except for additional income tax revenue, (see note 5). Figures are for Great Britain in 2004–05 price terms, using the GDP deflator index, rounded to the nearest £100 million.
2. Basic state pension costs are estimated by the Government Actuary's Department, consistent with Budget 2004 assumptions, made using 2002 based population projections.
3. The savings credit is abolished for those aged 75 and over from April 2006 with no payments to existing pensioners and no new recipients after 2006.
4. The savings from savings credit and other income related benefits (guarantee credit, housing benefit and council tax benefit) are calculated using the Department's policy simulation model for 2006–07. It is assumed that the proportion of savings calculated for the first year is constant for subsequent years.
5. The net cost including tax revenues regardless of contribution record in 2006–07 is £2.7 billion. For illustrative purposes, we have assumed income tax revenue to be a fixed percentage of the gross cost for this option in 2007–08 and 2008–09. Therefore, the illustrative total net cost in 2007–08 is £3.0 billion and in 2008–09 is £3.2 billion. Estimates for later years would be subject to a greater degree of uncertainty. Tax revenues have been calculated using the Departments policy simulation model, as this provides information at a household level.
6. The state second pension is assumed to be unchanged.




 
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