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Pensions Commission

20. Mr. Graham Stuart: To ask the Secretary of State for Work and Pensions what assessment he has made of the second report of the Pensions Commission. [40177]

Mr. Timms: The Government have welcomed the Pensions Commission's second report, and welcomed its proposals and options as the right basis for building the consensus that we need.

The Government will now reflect on the report and are committed to consulting with the public and stakeholders on these key issues as part of the National Pensions Debate. At this stage of the debate no decisions have been taken on the specific recommendations of the report, and we are ruling nothing in and nothing out. The Government will work towards the publication of a White Paper in the spring which will set out their response.

Departmental Retirements

21. Dr. Pugh: To ask the Secretary of State for Work and Pensions what the average age of retirement for employees of his Department was in the last period for which figures are available. [40178]

Mrs. McGuire: The average retirement age in the year to October 2005 is 62.

Where people have left the Department in an early retirement exercise the average age is 55.

Where people have been retired on grounds of ill health the average age is 47.

Basic State Pension

Mr. Leigh: To ask the Secretary of State for Work and Pensions what the change in the basic state pension will be between 2005–06 and 2006–07. [40180]

Mr. Timms: From April 2006 the rate of the basic state pension will increase by 2.7 per cent. in line with the growth in the Retail Prices Index. This means the weekly rate for a full basic state pension will rise from £82.05 a week to £84.25 a week.

Adam Afriyie: To ask the Secretary of State for Work and Pensions how much more the basic state pension will be worth in 2006–07 than in 2005–06. [38522]

Mr. Timms: The basic state pension will be increased next April by 2.7 per cent. in line with the Retail Prices Index.

Administrative Savings

Mr. Maude: To ask the Secretary of State for Workand Pensions what administrative savings have been made by his Department in each of the last eight years. [34951]

 
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Mr. Plaskitt: The Department for Work and Pensions was formed in June 2001 from the Department of Social Security and parts of the former Department for Education and Employment including the Employment Service.

Information is published on gross and net controlled administration cost under spends in the Public Expenditure Outturn White Papers. These are available in the Library of the House.

As part of the 2004 Spending Review the Department is required to achieve efficiency gains of at least £960 million by 2007–08 as set out in the Efficiency Technical Note which is available on the Department's website.

Benefit Claimants (Forest of Dean)

Mr. Harper: To ask the Secretary of State for Work and Pensions how many people in the Forest of Dean constituency are receiving (a) jobseeker's allowance and (b) incapacity benefit. [36245]

Mr. Plaskitt: As at October 2005, there were 706 people claiming jobseeker's allowance in the Forest of Dean parliamentary constituency.

As at May 2005, there were 3,300 people claiming incapacity benefit or severe disability allowance in the Forest of Dean parliamentary constituency.

Both figures are the most recent available.

Benefit Payments

Danny Alexander: To ask the Secretary of State for Work and Pensions (1) whether it is the policy of his Department to transfer to direct payment the benefits of claimants paid by cheque if they fail to express their desire to continue receiving payment by cheque in response to correspondence from his Department; [39187]

(2) what length of time his Department allows for people to respond who have been written to by his Department advising them that benefits paid to them by cheque will be transferred to direct payment unless they state a preference to continue being paid by cheque; [39188]

(3) whether letters being sent to claimants who have one or more benefits paid by cheque and another paid into a bank account about their wish to continue receiving payment by cheque are being made available in formats accessible to those who cannot read standard print. [39189]

Mr. Plaskitt: Cheque payments were designed for those people who cannot open or operate any sort of bank or building society account.

Around 100,000 customers had one benefit paid by cheque and another into an account. We have been writing to these customers to tell them that we plan to start paying all their benefits into their account unless they let us know that they want to carry on being paid by cheque. Customers are normally asked to contact us within 14 days of the letter being sent if they want to continue to be paid by cheque.
 
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Customers receiving disability living allowance or attendance allowance by cheque were advised that the way we pay benefits is changing and that we would now pay into the account into which their other benefit(s) were already being paid. A specified period to contact us was not included.

We are not able to automatically identify all those customers who may have trouble reading standard print at the time we send out the initial letters. If they contact us we can then send them a letter in larger print or in Braille.

Danny Alexander: To ask the Secretary of State for Work and Pensions what the average number of days was from first contact by a new jobseeker's allowance claimant to first payment for claims administered by (a) the Benefits Agency and (b) Jobcentre Plus in each of the last five years. [34271]

Margaret Hodge [holding answer 6 December 2005]: The administration of Jobcentre Plus is a matter for the chief executive of Jobcentre Plus, Lesley Strathie. She will write to the hon. Member.

Letter from Lesley Strathie, dated 9 January 2006:

The Secretary of State has asked me to reply to your question about what the average number of days was from first contact by a new Jobseeker's Allowance claimant to the first payment for claims administered by (a) the Benefits Agency and (b) Jobcentre Plus in each of the last five years. This is something which falls within the responsibilities delegated to me as Chief Executive of Jobcentre Plus.

Jobcentre Plus came into existence in 2002. Prior to that, claims were processed by the Benefits Agency. The processing of claims to Jobseeker's Allowance has undergone considerable change since 2000, with much more emphasis being given to providing a package of support aimed at helping the customer to find work. For example, the introduction of Work Focused Interviews, although adding an extra stage to the claim process, has facilitated a pro-active rather than a passive approach to the search for work.

The information is in the table.

Calendar year	Actual average clearance time (days)
2000	9.1
2001	9.6
2002	10.2
2003	10.8
2004	12.0
2005 (up to October)	13.4

The Actual Average Clearance Time for Jobseeker's Allowance is measured from the date the customer first contacts Jobcentre Plus to the date the customer is sent a notice of entitlement.

I hope this is helpful.

Mr. Laws: To ask the Secretary of State for Work and Pensions what total spending was on (a) all pensioner benefits, (b) the basic state pension, (c) minimum income guarantee and pension credit, (d) winter fuel payment, (e) disability benefits for pensioners, (f) housing benefit for pensioners, (g) council tax benefit for pensioners and (h) other benefits for pensioners (i) in cash terms, (ii) in real terms and (iii) as a percentage of gross domestic product in each year since 1997; and what estimate he has made of the equivalent figures in (A) 2010, (B) 2020, (C) 2030, (D) 2040 and (E)2050. [35363]

 
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Mr. Timms: The available information is in the following tables.
(a) All pensioner benefit expenditure, Great Britain

	£ million
	(i) Cash terms	(ii) Real terms, 2005–06 prices	(iii) Percentage of gross domestic product
1997–98	45,464	54,674	5.5
1998–99	47,505	55,683	5.5
1999–2000	50,532	58,089	5.5
2000–01	53,415	60,610	5.5
2001–02	57,637	63,824	5.7
2002–03	60,869	65,327	5.7
2003–04	64,214	67,137	5.7
2004–05	70,654	72,333	6.0
2010–11	97,710	85,759	6.2
2020–21	151,920	101,163	5.8
2030–31	265,021	133,893	6.3
2040–41	448,220	171,806	6.7
2050–51	781,010	227,129	7.2

(b) Basic state pension expenditure, Great Britain

	£ million
	(i) Cash terms	(ii) Real terms, 2005–06 prices	(iii) Percentage of gross domestic product
1997–98	30,391	36,547	3.7
1998–99	31,914	37,408	3.7
1999–2000	33,378	38,369	3.6
2000–01	33,986	38,564	3.5
2001–02	36,565	40,490	3.6
2002–03	38,469	41,287	3.6
2003–04	39,828	41,641	3.6
2004–05	41,389	42,373	3.5
2010–11	54,339	47,693	3.4
2020–21	81,809	54,477	3.1
2030–31	132,914	67,150	3.2
2040–41	197,113	75,555	2.9
2050–51	274,409	79,802	2.5

(c) MIG/pension credit expenditure, Great Britain

	£ million
	(i) Cash terms	(ii) Real terms, 2005–06 prices	(iii) Percentage of gross domestic product
1997–98	3,721	4,475	0.5
1998–99	3,566	4,180	0.4
1999–2000	3,725	4,283	0.4
2000–01	4,035	4,578	0.4
2001–02	4,417	4,891	0.4
2002–03	4,405	4,728	0.4
2003–04	4,851	5,072	0.4
2004–05	5,997	6,140	0.5
2010–11	9,262	8,129	0.6
2020–21	15,145	10,085	0.6
2030–31	33,145	16,745	0.8
2040–41	75,471	28,929	1.1
2050–51	175,361	50,998	1.6

(d) Winter fuel payment expenditure, Great Britain

	£ million
	(i) Cash terms	(ii) Real terms, 2005–06 prices	(iii) Percentage of gross domestic product
1997–98	191	229	*
1998–99	194	228	*
1999–2000	759	873	0.1
2000–01	1,749	1,985	0.2
2001–02	1,681	1,861	0.2
2002–03	1,705	1,830	0.2
2003–04	1,916	2,003	0.2
2004–05	1,954	2,000	0.2
2010–11	2,147	1,884	0.1
2020–21	2,024	1,348	0.1
2030–31	2,492	1,259	0.1
2040–41	2,807	1,076	*
2050–51	3,013	876	*

 
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(e) Disability benefit expenditure for pensioners, Great Britain

	£ million
	(i) Cash terms	(ii) Real terms, 2005–06 prices	(iii) Percentage of gross domestic product
1997–98	4,031	4,848	0.5
1998–99	4,353	5,103	0.5
1999–2000	4,652	5,348	0.5
2000–01	4,965	5,634	0.5
2001–02	5,335	5,907	0.5
2002–03	5,598	6,008	0.5
2003–04	6,027	6,301	0.5
2004–05	6,418	6,571	0.5
2010–11	9,019	7,916	0.6
2020–21	13,874	9,238	0.5
2030–31	23,220	11,731	0.6
2040–41	35,826	13,732	0.5
2050–51	51,544	14,990	0.5

(f) Housing benefit for pensioners expenditure, Great Britain

	£ million
	(i) Cash terms	(ii) Real terms, 2005–06 prices	(iii) Percentage of gross domestic product
1997–98	3,781	4,547	0.5
1998–99	3,843	4,504	0.4
1999–2000	3,931	4,518	0.4
2000–01	4,110	4,664	0.4
2001–02	4,380	4,850	0.4
2002–03	4,730	5,077	0.4
2003–04	4,475	4,679	0.4
2004–05	4,692	4,804	0.4
2010–11	6,194	5,437	0.4
2020–21	9,044	6,023	0.3
2030–31	16,186	8,177	0.4
2040–41	29,958	11 ,483	0.4
2050–51	58,791	17,097	0.5

(g) Council tax benefit for pensioners expenditure, Great Britain

	£ million
	(i) Cash terms	(ii)Real terms, 2005–06 prices	(iii) Percentage of gross domestic product
1997–98	1,080	1,298	0.1
1998–99	1,125	1,318	0.1
1999–2000	1,164	1,338	0.1
2000–01	1,230	1,395	0.1
2001–02	1,325	1,467	0.1
2002–03	1,420	1,524	0.1
2003–04	1,636	1,711	0.1
2004–05	1,818	1,861	0.2
2010–11	2,808	2,465	0.2
2020–21	3,648	2,429	0.1
2030–31	6,004	3,034	0.1
2040–41	10,595	4,061	0.2
2050–51	20,870	6,069	0.2

 
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(h) Other benefits for pensioners expenditure, Great Britain

	£ million
	(i)Cash terms	(ii) Real terms, 2005–06 prices	(iii) Percentage of gross domestic product
1997–98	2,270	2,730	0.3
1998–99	2,510	2,942	0.3
1999–2000	2,923	3,360	0.3
2000–01	3,340	3,789	0.3
2001–02	3,935	4,358	0.4
2002–03	4,541	4,874	0.4
2003–04	5,480	5,730	0.5
2004–05	8,386	8,585	0.7
2010–11	13,941	12,236	0.9
2020–21	26,375	17,563	1.0
2030–31	51,062	25,797	1.2
2040–41	96,449	36,970	1.4
2050–51	197,022	57,297	1.8

Notes:
1.Expenditure figures are for Great Britain.
2.Expenditure has been rounded to the nearest million pounds.
3.Gross domestic product percentages have been rounded to one decimal place. A percentage less than 0.1 per cent. is indicated by the symbol *.
4.Expenditure for the basic state pension, minimum income guarantee and other benefits for pensioners include a small amount of expenditure on child dependency increases which are paid with some of these entitlements.
5.Disability benefits for pensioners include disability living allowance, attendance allowance and severe disablement allowance.
6.For figures up to 2004–05, other benefits for pensioners include additional state pension/SERPS, non-contributory retirement pension, contribution based Christmas bonus, pensions compensation board, over65's payment, over70's payment, the over 75 TV licence, widow's benefit, bereavement benefits and incapacity benefit.
Incapacity benefit is only included until 2000–01 as incapacity benefit was no longer paid to people over pension age after that year, following the 1995 Reforms.
7.For figures from 2010–11, other benefits for pensioners include additional state pension/SERPS, non-contributory retirement pension, contribution based Christmas bonus, non-contributory Christmas bonus and the over 75 TV licence.
8.As per the above notes (6 and 7), the breakdown of expenditure is not on a consistent basis.
Source:
Expenditure and percentage of gross domestic product figures have been taken from data which underlies the 2005 pre-Budget report.

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