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8 Nov 2006 : Column 1637W—continued

Part-time Study Rules

Emily Thornberry: To ask the Secretary of State for Work and Pensions pursuant to his answer of 12 September 2005, to the hon. Member for Brent, East (Sarah Teather), Official Report, column 2500W, on part-time study rules, (1) if he will place in the Library a copy of the review of the part-time study rules; [90192]

(2) if he will carry out a pilot exempting young people living in a number of accredited foyers from the part-time study rule so that they can (a) remain on and (b) claim income support for the duration of their further education course; [90376]

(3) if he will carry out a cost-benefit analysis of the effect of (a) abolishing and (b) changing the part-time study rule for housing benefit; [90377]

(4) if he will make a statement on reform of the part-time study rule to enable young people to study full-time while in receipt of housing benefit. [90378]

Mr. Plaskitt: I have asked my officials to liaise with foyers to identify what could be done to support young people taking a second chance at education without it meaning they lose their benefits, in particular housing benefit. We are not currently proposing a removal of the existing 16-hour study rules for Jobseeker's Allowance. However, we are considering options to find the most effective ways of helping young people with complex needs. We are also in discussions with the Department for Education and Skills on this issue.

The review of the part-time study rules is ongoing, and nothing has been published.

Pensions

Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions if he will place in the Library the data underlying the graph on page 46 of the Response to the Report by the Parliamentary Ombudsman “Trusting in the Pensions Promise” showing cash and net present value costs over time for compensating those who have suffered diminutions in their pensions. [94085]

James Purnell: The following table shows the data underlying the graph on page 46 of the Response to the Report by the Parliamentary Ombudsman “Trusting in the Pensions Promise”. Please note that, as stated in the
8 Nov 2006 : Column 1638W
report, this graph shows the typical long-term cost profile, and that the cost profiles for different scenarios vary.

£ million
Cash NPV

2007-08

12

10

2008-09

47

39

2009-10

90

70

2010-11

116

84

2011-12

113

77

2012-13

106

69

2013-14

122

228

2014-15

139

80

2015-16

158

85

2016-17

176

89

2017-18

190

91

2018-19

204

92

2019-20

211

90

2020-21

228

92

2021-22

249

95

2022-23

265

95

2023-24

278

94

2024-25

295

94

2025-26

311

93

2026-27

325

92

2027-28

343

91

2028-29

358

90

2029-30

368

87

2030-31

378

84

2031-32

386

81

2032-33

392

78

2033-34

395

74

2034-35

397

70

2035-36

396

66

2036-37

394

62

2037-38

389

57

2038-39

379

53

2039-40

368

48

2040-41

355

44

2041-42

342

40

2042-43

328

36

2043-44

313

32

2044-45

299

29

2045-46

283

26

2046-47

268

23

2047-48

253

21

2048-49

237

18

2049-50

221

16

2050-51

205

14

2051-52

189

12

2052-53

174

11

2053-54

160

9

2054-55

145

8

2055-56

132

7

2056-57

119

6

2057-58

106

5

2058-59

94

4

2059-60

83

3

Notes:
1. 2005-06 prices
2. NPV costs discount cash costs by 2.5 per cent. per year to convert cash costs into real costs and, in addition, by 3.5 per cent. a year in years 0-29, and by 3 per cent. a year in years 30 onwards to convert real costs into NPV costs.

8 Nov 2006 : Column 1639W

Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions if he will estimate the cost of compensation to those identified in the Ombudsman’s report “Trusting in the Pensions Promise” who have suffered diminutions in their pensions if Pension Protection Fund compensation rules were applied. [94506]

James Purnell: I refer the hon. member to the written answer given to the hon. member for Yeovill, (Mr. Laws).

Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions what the total cost is to his Department of work related to pension reform that has been undertaken by consultants since the publication of the Pensions Commission’s Second Report on 30 November 2005. [90395]

James Purnell: The total cost of work related to pension reform, both research and consultancy, that has been undertaken by consultants for the Department for Work and Pensions between 30 November 2005 and the end of August 2006 is £2,686,741.

Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions if he will estimate the number of deferred members of occupational pension schemes whose preserved pension entitlements include a guaranteed minimum pension element that is subject to fixed rate revaluation at (a) 8.5 per cent. for individuals who ceased to be active members between 6 April 1978 and 5 April 1988, (b) 7.5 per cent. for individuals who ceased to be active members between 6 April 1988 and 5 April 1993, (c) 7.0 per cent. for individuals who ceased to be active members between 6 April 1993 and 5 April 1997, (d) 6.25 per cent. for individuals who ceased to be active members between 6 April 1997 and 5 April 2002 and (e) 4.5 per cent. for individuals who ceased to be active members on or after 6 April 2002. [90398]

James Purnell: The information requested is in the following table.

Date of leaving Number of individuals

6 April 1978 to 5 April 1988

4,150,000

6 April 1988 to 5 April 1993

2,849,000

6 April 1993 to 5 April 1997

2,395,000

6 April 1997 to 5 April 2002

2,403,000

6 April 2002 to date

1,033,000

Note:
These figures include those pensions which have been bought out into a deferred annuity contract and are based on a 3 per cent. sample of the NIRS2 database.

Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions what estimate he has made of the net saving to the Treasury in each year from 2012
8 Nov 2006 : Column 1640W
of delaying earnings indexation of the basic state pension until (a) 2013, (b) 2014 and (c) 2015 using figure 9 of the Pensions White Paper, “Security in Retirement: Towards a New Pension System”, as a baseline. [90413]

James Purnell: The information is in the following table.

Savings from a delay in the earnings link
Earnings uprating delayed to:
2013 2014 2015

2012

0.6

0.6

0.6

2013

0.6

1.2

1.2

2014

0.6

1.2

1.8

2015

0.6

1.3

1.9

2016

0.7

1.3

1.9

2017

0.7

1.3

2.0

2018

0.7

1.4

2.0

2019

0.7

1.4

2.1

2020

0.7

1.4

2.1

2030

1.0

2.0

3.0

2040

1.3

2.6

3.9

2050

1.4

2.9

4.2

Notes: 1. All figures are in 2006-07 prices are in £ billion and are for all UK and overseas pensioners; this is consistent with the presentation in the White Paper.
2. These figures are net expenditure changes ie they include the savings made from reduced income-related benefit expenditure; they do not include any change in income tax revenues or national insurance.
3. These additional expenditure estimates are compared to a baseline where the full package of White Paper reforms shown in figure 9 of the Pensions White Paper, “Security in Retirement: towards a new pensions system” are in place. Interactions with changes to qualifying rules and state pension age changes are therefore included.

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