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21 Feb 2005 : Column 105W—continued

National Insurance Numbers

Mr. Letwin: To ask the Secretary of State for Work and Pensions how many national insurance numbers are currently in issue. [213991]

Mr. Pond: There are approximately 72 million national insurance numbers currently in issue.

Source:

DWP Departmental Central Index

Occupational Health

Mr. Boswell: To ask the Secretary of State for Work and Pensions what action he is taking in co-ordination with other Government Departments to (a) disseminate advice and good practice on occupational health in the workplace and (b) clarify the official vehicles for doing so. [215726]

Jane Kennedy: The Department for Work and Pensions (DWP) is working with Department of Health to deliver action from the 'Choosing Health?' White Paper, and to support NHS plus to provide occupational health services where capacity is available.

The Health and Safety Executive disseminates occupational health advice and best practice through its own staff, its website and written guidance.

In addition, my right hon. Friend the Secretary of State, announced 'Workplace Health Direct' on 2 February 2005 as part of DWP's five-year strategy on
 
21 Feb 2005 : Column 106W
 
employment opportunities for all. This is a £20 million pilot scheme to give free occupational health, safety and return-to-work advice and support to small and medium sized businesses and workers.

We are also exploring the potential role of vocational rehabilitation in support of occupational health through its Framework for Vocational Rehabilitation published in October 2004.

Pension Credit

Mr. Byrne: To ask the Secretary of State for Work and Pensions how many pensioners are in receipt of pension credit in Birmingham, broken down by constituency; and what the total value of pension credit paid to them is. [214033]

Malcolm Wicks: Information on numbers of households and individuals in receipt of pension credit in each constituency at 31 December 2004 is contained in the most recent quarterly pension credit progress report, which was published on 3 February. A copy of the report is in the Library. Between 1 October 2003 and 31 December 2004 an estimated total of £181.7 million, rounded to the nearest £100,000, was paid in pension credit in the ten Birmingham constituencies. The average award over this period was £50.67.

Sources:

Programme Accounting Computer System and IAD Information Centre, Department for Work and Pensions.

Dr. Kumar: To ask the Secretary of State for Work and Pensions (1) how many pensioners have received pension credit in the constituency of Middlesbrough, South and Cleveland, East; [215897]

(2) how many pensioners benefited from the minimum income guarantee in Middlesbrough, South and Cleveland, East constituency in each year of its operation. [215898]

Malcolm Wicks: The information is given in the two tables. Further information on numbers of households and individuals in receipt of pension credit and average awards at 31 December 2004 is contained in the most recent quarterly Pension Credit progress report, which was published on 3 February. A copy of the report is in the Library.
Table 1: Minimum income guarantee recipients, Middlesbrough, South and Cleveland, East, 1999–2003

	Households	Individuals
August 1999	2,700	3,100
August 2000	2,800	3,300
August 2001	3,000	3,600
August 2002	2,900	3,500
August 2003	3,100	3,700

Notes:
1.Figures have been taken from a 5 per cent. sample and are subject to a degree of sampling variation.
2.Figures are rounded to the nearest hundred.
3.Individuals comprise claimants and partners and may contain a small number of partners aged under 60.
4.Minimum income guarantee was introduced in April 1999
5.Minimum income guarantee was replaced by pension credit from 6 October 2003.
6.Parliamentary constituencies are assigned by matching postcodes against the relevant ONS directory.
Source:
IAD Information Centre, Department for Work and Pensions, 5 per cent. sample.




 
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Table 2: Pension credit recipients, Middlesbrough, South and Cleveland, East, 2004

Date	Households	Individuals
August 2004	4,955	6,120
December 2004	5,055	6,250

Notes:
1.Figures are rounded to the nearest five.
2.Figures relate to the end of the month.
3.The figures for December 2004 are the latest available.
Source:
IAD Information Centre, Department for Work and Pensions, 100 per cent. sample.

Pensions

Chris Ruane: To ask the Secretary of State for Work and Pensions what the average charge was for selling a pension in each of the last 10 years. [215706]

Malcolm Wicks: Available information on average management charges for personal pensions over the last 10 years (including stakeholder pensions from 6 April 2001) is in the following table. The average charges are based on 25 year regular premiums of £60 per month except for 2004 which is based on £50.
Average reduction in yield for personal and stakeholder pensions from 1995 to 2004 Percentage

	Personal pension	Stakeholder pension
1995	1.9	—
1996	1.9	—
1997	1.8	—
1998	1.7	—
1999	1.6	—
2000	n/a	—
2001	1.1	1.0
2002	1.1	1.0
2003	n/a	n/a
2004	1.1	1.0

The figures are from the Financial Services Authority (FSA), and its predecessor the Personal Investment Authority (PIA), who collected information on pension charges and reported this using the Reduction in Yield (RIY) measurement. This is defined as the percentage point reduction in the gross return on a pension fund as a result of explicit charges and fees. Dealing costs and other implicit charges are not included.Until 2002, the figures were collected as part of the FSA and PIA annual disclosure surveys. However, they have been replaced by online comparative tables, which give present not historical data and so some figures are unavailable.
 
21 Feb 2005 : Column 108W
 

The RIY on personal pensions has fallen significantly since the mid 1990's, from around 1.9 per cent. in 1995 to around 1.1 per cent. in 2002, where it has remained. This drop can largely be attributed to the introduction of the stakeholder pension charge cap, currently set at 1 per cent. and the FSA restrictions on advised sales of personal pensions with significantly higher charges than this.

Chris Ruane: To ask the Secretary of State for Work and Pensions how many and what percentage of pensions were sold to each income decile of the population in the last year for which figures are available; and if he will make a statement. [215707]

Malcolm Wicks: The information is not available in the form requested, and such information that is available is shown in the table.

The table shows income and status of people contributing to a Personal Pension or Stakeholder Pension in the 2002–03 tax year, not people purchasing a pension product; some of the personal pensions recorded in the table will have been in existence for several years.

The table shows that the majority of contributors to both Personal and Stakeholder Pensions are employees, with the next largest group of contributors being the self-employed. For both Personal Pensions and Stakeholder Pensions the majority of contributors in 2002–03 were those earning under £20,000 a year and there are very few contributors who are either outside normal working ages or not in employment.

This Government want people with modest incomes to have access to good value pensions, and to make the right pension provision for a secure retirement; stakeholder pensions are helping to meet this aim.
Number of individuals contributing to a Personal or Stakeholder Pension by earned income and status 2002–03

	Personal pensions	Stakeholder pensions	Personal and Stakeholder pensions
Employees	4,520,000	860,000	5,130,000
Of which:
Earning £0-£9,999	900,000	210,000	1,070,000
Earning £10,000-£19,999	1,790,000	360,000	2,050,000
Earning £20,000-£29,999	980,000	180,000	1,100,000
Earning £30,000 plus	850,000	110,000	910,000
Self-Employed	980,000	130,000	1,060,000
Of which:
Earning £0-£9,999	310,000	50,000	340,000
Earning £10,000-£19,999	300,000	40,000	320,000
Earning £20,000-£29,999	160,000	20,000	180,000
Earning 30,000 plus	210,000	20,000	230,000
In receipt of a Pension	30,000	10,000	40,000
Child	0	20,000	20,000
Full-time Education	0	0	0
Carer	0	10,000	10,000
Unemployed	0	10,000	10,000
Other	30,000	20,000	50,000
All	5,560,000	1,060,000	6,320,000

Notes:
1.The table refers to the number of individuals whose Personal or Stakeholder Pension has received a contribution during the year.
2.Status is largely based on what is reported by an individual when making their opening application, or for existing business by the provider.
3.Earned income is derived from the Survey of Personal Incomes (SPI) and consists of all income chargeable under Schedule E (mainly pay, private and occupational pensions, retirement annuities and state retirement pensions), Schedule D Cases I and II (self-employment income), and miscellaneous other earnings.
4.The Personal and Stakeholder column includes people contributing to either, or both, a Personal and Stakeholder Pension. For this reason, it will not total the individual columns for Personal Pensions and Stakeholder Pensions.
5.All figures are rounded to the nearest 10,000 and may not sum as a result.
Source:
Inland Revenue.




 
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Chris Ruane: To ask the Secretary of State for Work and Pensions what assessment his Department has made of the effect of the current level of stakeholder charges on the uptake of personal pensions by low income workers; and if he will make a statement. [215708]

Malcolm Wicks: In the period between April 2001 and September 2004 over 40 pension providers have sold nearly 2.2 million stakeholder pensions, and the average charge on personal pensions has fallen from a 1.9 per cent. Reduction In Yield in 1996 to 1.1 per cent. in 2004, a fall the Pensions Commission attributes a significant part of to the stakeholder pension charge cap. This fall in charges has ensured more of peoples savings go towards their retirement, and less is consumed by charges.

However the Government recognises that it has been difficult to ensure that the pensions industry can effectively market stakeholder pensions within the constraints of a 1 per cent. charge cap, and to increase the proportion of under-savers actively targeted by providers the Government have, after commissioning an independent review by Deloitte, announced a revised charge cap of 1.5 per cent. for new members joining on or after 6 April 2005 for the first 10 years of membership, reverting to 1 per cent. thereafter. These changes will increase the number of under-savers the pensions industry can cost effectively target, while still ensuring good value for the consumer.

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