| Previous Section | Index | Home Page |
25 July 2006 : Column 1579W—continued
James Purnell: Specific information regarding low income for Great Britain is available in "Households Below Average Income (HBAI) 1994/95-2004/05", available in the Library. The main source for HBAI is the Family Resources Survey. "Pensioner Poverty" in the context of this question is taken to be the standard measurement, i.e. people over state pension age living in a household with income below 60 per cent. of the Great Britain median.
The data source does not allow us to provide robust estimates below a regional level. Therefore, estimates for Houghton and Washington East constituency and Sunderland city council are not available. Since 1996-97, around 50,000 people over state pension age in the North East have been lifted out of poverty after housing costs have been taken into account, or around 10,000 before housing costs have been taken into account. This represents 12 per cent. after housing costs, or 3 per cent. before housing costs.
Mr. Kemp: To ask the Secretary of State for Work and Pensions how many and what percentage of pensioners in the (a) Houghton and Washington East constituency and (b) Sunderland city council area have received the £200 payment to assist with council tax in 2005-06. [87367]
James Purnell: Information that is available is in the table below. It is not possible to provide the percentage of pensioners in the Houghton and Washington East constituency who have received the £200 payment because the information is not available by parliamentary constituency.
| Payments made | Percentage of people aged 65 or over | ||
| Notes: 1. Figures are rounded to the nearest 10 and refer only to the main payment run for the £200 payment to help with Council Tax bills, so they do not include the late payment run figures. The final figures will be available shortly and placed in the Library. 2. Percentage figures have been calculated using mid year population estimates of men and women aged 65 and over, which are not available by Parliamentary Constituency. Source: DWP Information Directorate and Office for National Statistics and General Register Office, Scotland (Mid year population estimates). | |||
Pensions
Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions if he will estimate the number of pensioners who will have an income, through the basic state pension and state second pension, before the addition of means tested benefits, that is higher than the basic state pension level and lower than the savings credit lower threshold in (a) 2010, (b) 2020, (c) 2030, (d) 2040 and (e) 2050 under the proposals in the White Paper Security in Retirement, Towards a New Pensions System. [78003]
James Purnell:
The following table gives the information requested under our reforms, where more
people will be getting state pensions based on their national insurance records, and there will be a more generous basic state pension due to the restoration of the earnings link. This provides a solid foundation for private saving. Incentives are further enhanced by reducing the growth of the savings credit.
| Table 1: Pensioners with gross retirement pensions between the level of a full basic state pension and the savings credit threshold under the White Paper reform proposals | |
| Number of pensioners | |
| Notes: 1. The estimates are subject to wide margins of uncertainty because they rely on very long-term projections of state pension accruals by individual pensioners. 2. Gross retirement pension is defined here as basic state pension plus gross additional pension i.e. that which has accrued from both contracted-in rights and contracted-out equivalent rights. 3. The projections assume: continued earnings uprating of the standard guarantee credit; the savings credit maximum is uprated by earnings from 2008 and then by prices from 2015; earnings uprating of the basic state pension from 2012; measures to improve coverage of the basic state pension described in the White Paper. 4. The projections are rounded to the nearest 50,000. Source: DWP microsimulation modelling and DWP administrative data | |
Mr. Weir: To ask the Secretary of State for Work and Pensions what guidelines for co-operation between supervisors in regulating cross-border pension activity have been agreed with other EU states on a multilateral basis. [88606]
James Purnell: The guidelines for co-operation between supervisors in regulating cross-border pension activity are contained within the "Protocol relating to the collaboration of the relevant competent authorities of the member states of the European Union in particular in the application of the Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of Institutions for Occupational Retirement Provision operating cross-border". The protocol was adopted by the supervisory authorities of all the EU member states on 22 February 2006. For the UK, the relevant authority is the Pensions Regulator, a non-departmental public body responsible for the supervision of work-based pension schemes within the UK.
Mr. Weir: To ask the Secretary of State for Work and Pensions what authorisation and approval is required if a pension scheme wishes to engage in cross-border activity with other EU member states. [88607]
James Purnell:
If a pension scheme wishes to engage in cross-border activity with other EU states, it must first be authorised (a general authorisation to accept contributions from European employers) and then approved (approval with regard to a specific European employer) by the Pensions Regulator. The specific procedure which schemes must follow is detailed in sections 287-289 of the Pensions Act 2004. The documentation schemes are required to produce in
order to be authorised and approved is contained within the Occupational Pension Schemes (Cross-border Activities) Regulations 2005 (SI 2005/3381). Further guidance on making applications for authorisation and approval to operate cross-border can be obtained via the Pensions Regulator website: www.thepensionsregulator.gov.uk/trustees/crossBorder/index.aspx
Pensions White Paper
Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions what definition he uses of ‘the long term’ on page 110 of the White Paper ‘Security in Retirement, Towards a New Pensions System’. [77994]
James Purnell: Expenditure projections in the White Paper “Security in retirement: towards a new pensions system” assume that the standard Guarantee Credit is uprated by earnings throughout the period to 2050.
Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions if he will estimate the savings that will be realised from the reforms to (a) the state second pension and (b) savings credit under the proposals in the White Paper “Security in Retirement: Towards a New Pensions System” in each year from 2008 to 2050. [78002]
James Purnell: The White Paper “Security in Retirement: Towards a New Pensions System” presents a coherent, interlinked and comprehensive package of reforms. As such it can be misleading to consider the impact of an individual measure in isolation. Each component needs to be considered alongside the other reforms introduced.
Under our reforms, more people will be getting state pensions based on their national insurance records, and there will be a more generous basic state pension due to the restoration of the earnings link. This provides a solid foundation for private saving. Incentives are further enhanced by reducing the growth of the savings credit.
The White Paper also contains measures to simplify the state second pension, whereby it will gradually become a flat-rate top-up to the basic state pension. Access to the state second pension will be widened, as more workers, carers and parents start to become entitled.
The following tables contain information on the additional costs arising due to the proposed reforms to the state second pension and to the savings credit as set out in the White Paper.
Table 1 shows additional projected state second pension expenditure following reform, compared to previous policy—where it would have become flat-rate by around 2056, credits were available to those caring for children aged under six, and the ability to contract out into DC schemes continues.
The second column shows the extra cost which would be incident if the state second pension did not become flat-rate in accrual by 2030.
| Table 1: Cost of state second pension reforms | ||
| £ billion, in 2006-07 price terms | ||
| Total cost of state second pension reforms | Further costs if accelerated flat-rating excluded | |
| Next Section | Index | Home Page |