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5 Mar 2007 : Column 1722W—continued


5 Mar 2007 : Column 1723W

5 Mar 2007 : Column 1724W
Without reform Pensions Bill reforms
40 per cent. marginal deduction rates: current system standard guarantee credit uprated by earnings 100 per cent. marginal deduction rates: Pensions Bill reforms

Number of pensioner households in 2050

9,050,000

650,000

Proportion of pensioner households in 2050

75

6

Notes: 1. The analysis is based on the reform proposals presented in the Pensions Bill rather than the White Paper. Some methodological improvements were made to the projections of pension credit eligibility between publication of the White Paper and the introduction of the Pensions Bill. 2. Estimates of the number of pensioner households eligible for pension credit are taken from the DWP dynamic micro-simulation model PENSIM2. Modelling of the reform proposals does not include any increase in private saving from the introduction of personal accounts, which would reduce the numbers eligible for pension credit. 3. The marginal deduction rate reflects the extent to which a marginal increase in gross income would result in a change in net income, assuming this is fully taken into account for pension credit entitlement. The deduction rate shown would not apply to all changes in income—for example where additional pension savings are taken as a lump sum. 4. Care should be taken when interpreting these projections as they are subject to a margin of uncertainty. The projections are based on long run simulations of the incomes of individuals under a set of assumptions including life expectancy, partnership formation, earnings growth, employment rates, state and private pension accumulation. 5. Projections of the number of pensioner households eligible for pension credit are derived from the projected proportions eligible and projections of the number of pensioner households in Great Britain. 6. Estimates cover all those aged above women's state pension age in the private household population of Great Britain. 7. Estimates account for equalisation of state pension age between 2010 and 2020. They also account for the proposed further increases in state pension age described in the Pensions Bill. The estimates assume that the minimum age at which people can claim pension credit rises in line with women's state pension age. 8. Projections under the Pensions Bill proposals 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; and measures to improve coverage of state pensions described in the Pensions Bill. Figures exclude the effect of personal accounts. 9. Projections under the current system with guarantee credit earnings uprated assume: continued earnings uprating of the standard minimum guarantee; continued price uprating of the savings credit threshold and the basic state pension. 10. The total number of pensioner households under the Pensions Bill reforms is lower than the total number under the current system because of the phased increase in the state pension age starting in 2024 Source: DWP microsimulation modelling.

Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions if he will revise Figure 1(xiv) in the Pensions White Paper ‘Security in Retirement: Towards a New Pension System’ to show the cost of proposed reforms to employers if all employers currently offering schemes with an employer contribution worth at least 3 per cent. of banded earnings automatically enrol all staff aged 22 years or over with earnings of at least £5,000 a year on their existing schemes on existing terms. [112914]

James Purnell: The following figures show the estimated costs to employers who contribute at least 3 per cent. of employees' salary if they were to automatically enrol all staff aged 22 years or over with earnings of at least £5,000 a year into their existing schemes on existing terms.

Most of these estimated costs would arise from the employer voluntarily offering a scheme with a contribution rate above the proposed minimum.

Costs of employer contribution at existing contribution rates ( million)
Firm-size £ million

1-4

100

5-49

200

50-249

300

250+

1,200

Total

1,800

Notes:
1. These costs cannot be added to costs of the 3 per cent. minimum contribution presented in the White Paper because this would involve double counting
2. Cost to employers are based on estimates of their current contribution rates, not projected contribution rates in 2010.
3. Costs of minimum employer contribution (£ million) are rounded to the nearest £100 million, figures may not sum due to rounding.
4. Participation rates are identical to those used in of Figure l.xiv in the Pensions White Paper ‘Security in retirement: Towards a New Pension System’ and are based on our central estimate of opt out and around one third. We estimate that the range of opt-out rates will be between 20 per cent. and 50 per cent.
Source:
DWP modelling using Employers' Pension Provision Survey 2005, Family Resources Survey 2004-05, Annual Survey of Hours and Earnings 2004 and Small and Medium Sized Enterprise Statistics 2004

Mr. Willetts: To ask the Secretary of State for Work and Pensions what estimates he has made or received of the amount of (a) state and (b) occupational pension entitlements accrued by people aged (i) 16 to 30, (ii) 30 to 40, (iii) 40 to 50, (iv) 50 to 65, (v) 65 to 75, (vi) 75 to 85 and (vii) over 85 in (A) the last year for which data are available, (B) 1985 and (C) 1995. [119517]

James Purnell: The requested information is not available for occupational pension entitlements.

The following table provides an estimate of the average number of qualifying years for state pension that had been accrued during a working life in the tax years 1984-85, 1994-85 and 2003-04.


5 Mar 2007 : Column 1725W

5 Mar 2007 : Column 1726W
Average number of state pension qualifying years
Tax year
Age 1984-85 1994-95 2003-04

16-29

6.9

7.7

6.2

30-39

17.5

19.9

20.5

40-49

23.2

28.4

31.4

50-64

32.8

34.9

40.0

65-74

36.3

40.9

41.9

Notes: 1. The sample size for people aged over 74 is insufficiently large to provide this information. 2. State pension qualifying years relate to the total number of fully accrued years for basic state pension, SERPS and state second pension. Source: Lifetime Labour Market Database (LLMDB).

Mr. MacDougall: To ask the Secretary of State for Work and Pensions when he plans to reinstate the link between pensions and earnings. [123248]

James Purnell: I refer the hon. Member to the written answer given on 11 December 2006, Official Report, column 724W, to the hon. Member for Portsmouth, South (Mr. Hancock).

Pensions: Bankruptcy

Susan Kramer: To ask the Secretary of State for Work and Pensions what estimate he has made of the number of people who were declared bankrupt and whose pension rights were adversely affected in consequence between the Landau ruling in the High Court of December 1996 and the Welfare Reform and Pensions Act 1999 coming into force. [124139]

James Purnell: The information requested is not available.

Pensions: EC Law

Mr. Laws: To ask the Secretary of State for Work and Pensions what legal advice he has taken on whether the proposed changes to basic pension contributory rules from April 2010 are compatible with European Union law; and if he will make a statement. [121848]

James Purnell: The Department has made a full and thorough assessment of the compatibility with European Union Law of the proposed changes to the rules governing entitlement to basic state pension in the Pensions Bill currently going through Parliament. Consequently, we are confident that all these proposed measures are compatible with European Union law.

Currently, state pension age for men and women is not equal. As a result, men need 44 qualifying years for a full basic state pension whereas women need 39. This inequality is permitted under the derogation at article 7 of the EC directive 79/7.

Action has already been taken (through the 1995 Pensions Act) to eliminate the inequality in state pension ages between men and women and this will occur between 2010 and 2020. The current Pensions Bill sets out the Government's plans to introduce a new single contribution condition (30 qualifying years for a full basic state pension) for both men and women reaching state pension age from April 2010. This would not, in our view, increase or exacerbate the existing discrimination due to unequal state pension ages between men and women. Any inequality in the system will be limited to the period between 2010 and 2020 and will gradually decrease over that period.

Public-Private Partnerships: Freedom of Information

Bob Spink: To ask the Secretary of State for Work and Pensions what discussions he has had with the Secretary of State for Constitutional Affairs on the application of freedom of information regulations to private companies performing public services. [120361]

Mrs. McGuire: In the course of official business, the Secretary of State has regular discussions with ministerial colleagues on a wide range of issues.

State Retirement Pensions

David Taylor: To ask the Secretary of State for Work and Pensions what the value would be of the 25p age addition to the state pension in 2006-07 if it had been uprated in line with (a) prices and (b) earnings since its introduction; and if he will estimate how much it would cost to increase it to those levels. [125383]

James Purnell: The 25p age addition would have a value of £2.44 in 2006-07 had it been increased in line with RPI since 1971. The equivalent figure with earnings uprating would be £4.39.

It is estimated that it would cost an additional £220 million in 2007-08 to reach the price uprated level. The equivalent figure to reach the earnings uprated level is an additional £420 million.

State Retirement Pensions: Scotland

Mr. MacDougall: To ask the Secretary of State for Work and Pensions how many (a) men and (b) women in (i) Glenrothes, (ii) Scotland and (iii) the UK qualify for a full basic state pension. [122620]

James Purnell: The information requested is not available. However, the information for recipients with full basic state pension as at March 2006 is in the following table.


5 Mar 2007 : Column 1727W
Male Female Total

Glenrothes parliamentary constituency

5,500

4,900

10,500

Scotland

306,300

305,900

612,200

GB

3,501,600

3,146,700

6,648,300

Notes:
1. Sample data are subject to a degree of sampling error.
2. Figures are rounded to the nearest 100. Totals may not sum due to rounding.
3. Figures have been rated to match WPLS totals.
4. Figures are for Great Britain.
5. A full basic state pension (£84.25 in 2006-07) is paid to those who fully satisfy the contribution conditions either in their own right or where applicable, on the basis of their late or former spouse’s contributions.
Source:
DWP Information Directorate 5 per cent. sample data.

Welfare Reform Bill

Mrs. Dean: To ask the Secretary of State for Work and Pensions which (a) individuals and (b) organisations (i) he and (ii) his officials have met to consult on the definition of the support group under the Welfare Reform Bill. [110580]

Mr. Jim Murphy: The Department has met a wide range of stakeholders to discuss our welfare reform proposals including our approach to the new Employment and Support Allowance support group. In particular, we have discussed the principles of the support group with representatives of organisations involved in the consultative groups overseeing the transformation of the Personal Capability Assessment.

Winter Fuel Payments: Appeals

Derek Conway: To ask the Secretary of State for Work and Pensions how many appeal tribunals there were on winter fuel payment application refusals in each of the last three years; and how many appeals were upheld. [123598]

James Purnell: The information is in the following table.

Winter fuel payments appeal tribunals
Appeals heard by tribunal Appeals upheld by tribunal

2003-04

504

4

2004-05

315

5

2005-06

28

2

Total

847

11

Source: Winter Fuel Payment Centre Records, February 2007

Home Department

Antisocial Behaviour Orders: Mentally Ill

Mr. Dunne: To ask the Secretary of State for the Home Department how many children with antisocial behaviour orders have underlying brain disorders, broken down by parliamentary constituency. [124409]

Mr. McNulty: Data is not collected centrally about the health or other needs status of persons issued with an antisocial behaviour order.


5 Mar 2007 : Column 1728W

Antisocial Behaviour: Landlord and Tenant

Mr. Hancock: To ask the Secretary of State for the Home Department how many landlords were prosecuted for allowing (a) drunkenness and (b) riotous behaviour on their premises in each of the last three years for which records are available. [124196]

Mr. Coaker: The following table sets out the number of prosecutions and resulting prosecutions for the offence of allowing drunkenness or riotous behaviour in licensed premises under the Licensing (Occasional Permissions) Act 1983. The Licensing Act 2003 repealed the 1983 Act when it came into effect on 24 November 2005 and created separate offences of allowing disorderly conduct on licensed premises and selling alcohol to people who are drunk. Conviction of each offence can lead to suspension or forfeiture of personal licences and a maximum fine of £1,000.

2003 2004 2005

Prosecutions

8

13

10

Of which:

Resulted in convictions

6

6

4


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