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Pensions Green Paper
34. Mr. Brady: To ask the Secretary of State for Social Security how long the consultation period following the Green Paper on pensions will be. [58402]
36. Mr. Gerald Howarth: To ask the Secretary of State for Social Security if he will make a statement on the Government's pension review. [58404]
Mr. Denham: As set out in the Green Paper "New Ambitions for our country: A New Contract for Welfare" (Cm 3805), we intend to publish a Green Paper on pensions later this year. Details of the consultation will be announced when the Green Paper is published.
Dr. Julian Lewis: To ask the Secretary of State for Social Security what the publication date is for the Green Paper on Pensions. [58382]
Mr. Denham: As set out in the Green Paper, "New Ambitions for our country: A New Contract for Welfare", we will publish a Green Paper on pensions later this year.
Benefits (Women)
Barbara Follett: To ask the Secretary of State for Social Security what plans he has to examine the effects on women of benefits lost due to their earning less than the national insurance lower earnings limit; and if he will make a statement. [58377]
Mr. Denham: We have announced a number of measures to help women in low-paid employment, including the Working Families Tax Credit and the national minimum wage. Data from the Labour Force Survey indicated that about 700,000 women will be floated above the lower earnings limit as a result of the national minimum wage, assuming there is no change in the number of hours they work. As part of our programme of welfare reform we are considering the best way of delivering support to all those who need help through the social security system, including low-paid women.
State Pensions
37. Fiona Mactaggart: To ask the Secretary of State for Social Security what plans he has to make it easier for pensioners to have their pensions paid directly into bank accounts. [58405]
Mr. Denham: Under existing arrangements, pensioners are able to choose from a number of ways in which to receive their retirement pension. One way is to have it paid directly into their bank accounts.
Prospective pensioners are advised about the options for payment on the claim form issued to them before their retirement date.
The choice of payment to a bank account can be made at the time a claim is made or at any time thereafter.
There are no current plans to make any changes in these arrangements.
16 Nov 1998 : Column: 396
Mr. Flynn:
To ask the Secretary of State for Social Security what would be the gross and net cost of (a) raising the basic retirement pension and linked benefits to £90 per week for a single person and £144 for a couple and (b) paying an additional non-contributory benefit of £40 per week to each person over pension age. [56016]
| £ billion | ||
|---|---|---|
| Raise RP and linked benefits to £90 | As previous column plus £40 non-contributory benefit | |
| Gross cost | 14.5 | 36.5 |
| Means-tested benefit offset | -3.0 | -5.5 |
| Net costs | 11.5 | 30.5 |
Notes:
1. Gross costs have been estimated by the Government Actuary's Department
2. Means-tested benefit offsets are based on the 1995-96 Family Resources Survey and the May 1996 Income Support Quarterly Statistical Enquiry, both uprated to 1998-99 benefit and earnings levels. These do not take account of the changes to IS rates which will be introduced in 1999-2000
3. Estimates are rounded to the nearest £0.5 billion
4. Where both members of a couple are in receipt of a Category A pension, they have each been awarded a basic state pension of £90 per week, pro-rated according to the percentage of the full pension which they receive
Mr. Duncan Smith: To ask the Secretary of State for Social Security what total lifetime contribution to SERPs for a single man would provide an addition to the basic state pension equal to the increase in income support available under the forthcoming minimum pension guarantee of £75 a week. [58505]
Mr. Denham: A person retiring in 1999-2000 who had been contracted into SERPs since its introduction in 1978 would need to have had constant real earnings of approximately £100 per week (in 1999-2000) terms to receive a gross weekly income from the basic State Pension and SERPS of around £75.
- Note:
- Assuming the individual is entitled to a full State Pension of £66.75 (April 1999 rate). The calculation does not take account of the fact that SERPs is taxable and so might not produce a net State Pension of £75, but since taxation is dependent largely upon individual circumstances it is not possible to take account of this detail.
Mr. Webb: To ask the Secretary of State for Social Security, pursuant to his answer to my hon. Friend the Member for Newbury (Mr. Rendel), of 4 November 1998, Official Report, columns 603-05, what estimate he has made of the total amount by which those entitled to SERPS have been underpaid (a) weekly and (b) since the introduction of NIRS 2 because of problems with that system. [59091]
Mr. Timms
[holding answer 10 November 1998]: The estimated total amount of SERPS being underpaid weekly is about £620,000. The total amount estimated to have been underpaid since April is about £7.7 million.
16 Nov 1998 : Column: 397
Mr. Cousins:
To ask the Secretary of State for Social Security for what reasons earnings disregards were not increased in the annual uprating of social security benefits. [58385]
Mr. Denham:
We believe that, for those who are able to undertake it, paid work is the surest route out of poverty. This is why our welfare reform programme has focused on making work pay and providing new and innovative ways to help people on benefit make an early return to work through the New Deals for unemployed people, lone parents, people with a disability or long-term illness and through initiatives like Employment Zones.
Mr. Field:
To ask the Secretary of State for Social Security if he will list by income bands of £10 and by gender the numbers of gainers and losers classified by each change proposed in "Support for Disabled People". [58122]
Mr. Timms
[holding answer 3 November 1998]: The information is not available in the format requested. In particular it is not possible to identify the position in the income distribution of those who will be affected by the changes using income bands of £10. Such information as is available is as follows:
16 Nov 1998 : Column: 398
Mr. Field:
To ask the Secretary of State for Social Security what estimate he has made of the number of claimants who will lose eligibility to the severe disablement allowance under his proposals set out in "Support for Disabled People"; and if he will break down this total between male and female claimants. [58301]
Mr. Timms:
It is estimated that each year, around 16,000 people who become disabled after the age of 20 will no longer be able to claim Severe Disablement Allowance. Of these approximately 10,000 will be women and 6,000 will be men. For those eligible, Income Support will still be available; current statistical data indicate that nearly 70 per cent. of this group already claim Income Support.
Incapacity Benefit
We estimate that around 55,000 men and 10,000 women will be affected by the proposed changes to Incapacity Benefit in the first year following the change (2001-02).
The vast majority of those who no longer qualify for Incapacity Benefit as a result of the proposed change to the contribution conditions are expected to be in the first and second quintiles of the household income distribution and to be already claiming income-based Jobseeker's Allowance or Income Support. Their entitlement to these benefits will not be affected by this change and some may benefit from the proposed Disability Income Guarantee. The remainder of those who will no longer qualify for Incapacity Benefit will be people who are not entitled to income-based Jobseeker's Allowance or Income Support because they have other income. They are expected to be predominantly in the middle of the household income distribution.
We expect that the majority of those who will have their Incapacity Benefit reduced as a result of taking some account of occupational and personal pensions over £50 a week will be in the top two quintiles of the household income distribution.
Both these changes will apply only to new claims for Incapacity Benefit. No-one who is already receiving Incapacity Benefit at the point of change will be affected.
Severe Disablement Allowance
We estimate that around 5,000 women and 3,000 men under 20 will gain by receiving the long-term rate of Incapacity Benefit at the end of the first year following the change. In addition, around 12,000 women and 8,000 men under 20 who were claiming Severe Disablement Allowance at the point of change will transfer to the long-term rate of Incapacity Benefit at the end of the first year.
People aged 20 or over who are already receiving Severe Disablement Allowance at the point of change will continue to receive the benefit, but no new claims from people aged 20 or over will be accepted. We estimate that around 10,000 women and 6,000 men aged 20 or over will no longer be able to claim Severe Disablement Allowance in the first year following the change. We estimate that, of those, around 6,000 women and 5,000 men will qualify for Income Support and will therefore see no change in their overall income. The 4,000 women and
1,000 men whom we estimate will not qualify for Income Support are expected to be concentrated in the middle of the household income distribution.
Disability Income Guarantee
We estimate that around 51,000 single men, 51,000 single women and 43,000 couples aged under 60, together with 30,000 disabled children, will benefit from this change in the first year (2001-02).
We expect that the majority of those who benefit will be in the second and third quintiles of the household income distribution.
Disability Living Allowance
We estimate that around 8,000 disabled children with severe mobility problems will benefit in the first year (2001-02) from our proposal to extend the higher rate mobility component of Disability Living Allowance to children aged 3 and 4. It is not possible to identify where the families concerned fall within the household income distribution.
Notes:
1. Income quintiles are 20 per cent. bands of household net equivalised income. The first quintile is the lowest band; the fifth quintile is the top band.
2. Position in the income distribution is determined after housing costs and represents the expected position before the changes come into effect.
3. Incomes are equivalised to adjust for household size and compositions. No adjustment is made to household income to reflect any additional needs that claimants of these benefits may have. To the extent that these people have any additional disability related costs then their position in the household income standard could overstate their relative living standards.
4. The information showing where recipients of various benefits are in the income distribution is taken from the 1995-96 and 1996-97 Households Below Average Income datasets based on the 1995-96 and 1996-97 Family Resources Surveys (FRS). The FRS is a sample survey of the GB population and all estimates must be treated as approximate.
5. Information on the number of claimants likely to be affected by each of the proposed changes is derived from the Income Support Quarterly Statistical Enquiry, February 1998; the Disability Living Allowance Quarterly Extract, February 1998; and a 1 per cent. sample of 1996-97 claims for Incapacity Benefit and Severe Disablement Allowance produced by DSS Analytical Services Division. All figures are estimates and must be treated as approximate.
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