Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of whether simpler pension fund statements are being produced and sent to clients by all pension providers as required.
Answered by Baroness Sherlock - Parliamentary Under-Secretary (Department for Work and Pensions)
From October 2022, new requirements were introduced for schemes used for automatic enrolment to provide a simpler annual benefit statement. The Department continues to work with the Financial Conduct Authority and The Pensions Regulator to ensure compliance. Additionally, the Department plans to monitor/review the regulations within 5 years of being introduced as per the regulations (Occupational and Personal Pension Schemes (Disclosure of Information) (Statements of Benefits: Money Purchase Benefits) (Amendment) Regulations 2021)).
The Department publishes annual official statistics on workplace pension participation and saving trends. This provides estimates on the total amount saved into workplace pensions for those eligible for Automatic Enrolment, which was over £131bn in 2023. The table below holds the estimates of the total amount saved over the last 5 years, in 2023 earnings terms, which are also found in the official statistics noted above. As requested, the breakdowns by DB and DC schemes and other/unknown are also shown.
(£ Billions) in 2023 earnings terms | 2019 | 2020 | 2021 | 2022 | 2023 |
Defined Contribution (DC) | 49.3 | 49.9 | 53.8 | 55.7 | 60.8 |
Defined Benefit (DB) | 63.8 | 68.6 | 72.5 | 64.8 | 65.8 |
Other/Unknown | 1.5 | 2.0 | 2.4 | 2.2 | 5.2 |
Total | 114.6 | 120.5 | 128.7 | 122.8 | 131.8 |
Notes: Estimates of amounts saved into workplace pensions are derived from ONS Annual Survey of Hours and Earnings (ASHE) data. The saving attributed to ‘other/unknown’ is a result of respondents answering ‘unknown’ or failing to answer when asking what their workplace pension scheme type was, despite reporting a positive value of pension saving.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what estimate they have made of the total contributions into (1) defined contribution, (2) defined benefit, and (3) other, pension schemes for the past five years.
Answered by Baroness Sherlock - Parliamentary Under-Secretary (Department for Work and Pensions)
From October 2022, new requirements were introduced for schemes used for automatic enrolment to provide a simpler annual benefit statement. The Department continues to work with the Financial Conduct Authority and The Pensions Regulator to ensure compliance. Additionally, the Department plans to monitor/review the regulations within 5 years of being introduced as per the regulations (Occupational and Personal Pension Schemes (Disclosure of Information) (Statements of Benefits: Money Purchase Benefits) (Amendment) Regulations 2021)).
The Department publishes annual official statistics on workplace pension participation and saving trends. This provides estimates on the total amount saved into workplace pensions for those eligible for Automatic Enrolment, which was over £131bn in 2023. The table below holds the estimates of the total amount saved over the last 5 years, in 2023 earnings terms, which are also found in the official statistics noted above. As requested, the breakdowns by DB and DC schemes and other/unknown are also shown.
(£ Billions) in 2023 earnings terms | 2019 | 2020 | 2021 | 2022 | 2023 |
Defined Contribution (DC) | 49.3 | 49.9 | 53.8 | 55.7 | 60.8 |
Defined Benefit (DB) | 63.8 | 68.6 | 72.5 | 64.8 | 65.8 |
Other/Unknown | 1.5 | 2.0 | 2.4 | 2.2 | 5.2 |
Total | 114.6 | 120.5 | 128.7 | 122.8 | 131.8 |
Notes: Estimates of amounts saved into workplace pensions are derived from ONS Annual Survey of Hours and Earnings (ASHE) data. The saving attributed to ‘other/unknown’ is a result of respondents answering ‘unknown’ or failing to answer when asking what their workplace pension scheme type was, despite reporting a positive value of pension saving.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what is the policy of the Pensions Regulator for using the term "gender" in place of the Equality Act 2010's terms of (1) "sex", and (2) "gender reassignment" in its Equality, Diversity and Inclusion Strategy.
Answered by Baroness Sherlock - Parliamentary Under-Secretary (Department for Work and Pensions)
The Pensions Regulator’s (TPR’s) strategy is wide-ranging, to ensure that it is fully inclusive and includes groups beyond the nine protected characteristics under the Equality Act 2010, that encompass sex and gender reassignment. TPR uses ‘gender’ as was defined by the Office of National Statistics at the time the strategy was published, and will review their EDI Policy at the point of strategy refresh or when ONS issue new guidance, if earlier.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what is the average total income of Pension Credit recipients, including all additional passported benefits.
Answered by Baroness Sherlock - Parliamentary Under-Secretary (Department for Work and Pensions)
No estimate has been made as the requested information is not available.
The Pensioners' Incomes series provides figures on how much income pensioners get each week and where they get that income from, but does not include all passported benefits. More information on the Pensioners’ Incomes series can be found on Gov.uk.
Pensioners' Incomes: financial years ending 1995 to 2023 - GOV.UK (www.gov.uk)
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many pensioner households they estimate will be eligible but not receiving Pension Credit by January 2025.
Answered by Baroness Sherlock - Parliamentary Under-Secretary (Department for Work and Pensions)
No estimate has been made.
Estimates for pensioner households who are eligible for but not receiving Pension Credit in 2022/23 are available on Gov.uk.
Income-related benefits: estimates of take-up: financial year ending 2023 - GOV.UK (www.gov.uk)
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many pensioners in the UK have annual incomes below £15,000, and of those how many are in receipt of pension credit.
Answered by Baroness Sherlock - Parliamentary Under-Secretary (Department for Work and Pensions)
For financial year 2022/23, we estimate that the number of pensioner units with gross annual income below £15,000 is approximately 1.6 million. Of those, we estimate 0.3 million are in receipt of Pension Credit.
This estimate is based on Pensioners’ Incomes and Households Below Average Income data derived from the Family Resources Survey and covers private households in the United Kingdom. Income is calculated as total income of the pensioner unit, including benefits such as State Pension and Pension Credit, occupational and personal pensions, investment income and earnings.
A pensioner unit can be a single pensioner over State Pension age, a pensioner couple where one member is over State Pension age, or a pensioner couple where both members are over State Pension age.
We want all eligible pensioners to apply for Pension Credit and so the Department is continuing to maximise opportunities to promote Pension Credit.
Like all means-tested benefits, a person’s eligibility for Pension Credit and the amount they may get depends on their specific financial and personal circumstances. Full eligibility criteria are available on gov.uk at the following link: Pension Credit: Eligibility - GOV.UK (www.gov.uk)
That’s why we encourage anyone who thinks they may be entitled to check whether they can get Pension Credit.
This Autumn, we will be directly contacting pensioners who are in receipt of Housing Benefit but who may be eligible for, but not currently claiming, Pension Credit – building on last years ‘Invitation to Claim’ trial.
From 16th September we have launched a Pension Credit awareness campaign across press, radio and social media and I know that the devolved administrations in Wales and Scotland, along with local authorities and organisations such as Age UK, are also undertaking promotional activities.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the impact of removing Winter Fuel Payments, without further warning, on (1) pensioners whose incomes are a small amount above the Pension Credit threshold, and (2) those who are entitled to Pension Credit but do not claim it.
Answered by Baroness Sherlock - Parliamentary Under-Secretary (Department for Work and Pensions)
The Department continues to maximise opportunities to promote Pension Credit and to raise awareness of its wider benefits and to encourage pensioners to apply. The department uses a range of creative media including TV, press, radio and social media to boost awareness of the benefit. We engage with stakeholders, including other Government Departments, Councils, and charities, to harness their help and support to raise awareness through their networks and channels.
The Government is ensuring pensioners are supported through our commitment to protect the Triple Lock, over 12 million pensioners will benefit, with many expected to see their new State Pension increase by around £1700 over the course of this Parliament.
Additionally, the Government will invest an extra £6.6 billion over this Parliament in clean heat and energy efficiency through the Warm Homes Plan, upgrading five million homes through solutions like low carbon heating and improved insulation to reduce emissions and cut bills.
The Household Support Fund is also being extended for a further six months, from 1 October 2024 until 31 March 2025. An additional £421 million will be provided to enable the extension of the HSF in England, plus funding for the Devolved Governments through the Barnett formula to be spent at their discretion, as usual.
The Warm Home Discount scheme in England and Wales provides eligible low-income households across Great Britain with a £150 rebate on their electricity bill. This winter, we expect over three million households, including over one million pensioners, to benefit under the scheme.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made, if any, of the change in value of the full basic state pension weekly payment in 2023–24 if it had been linked only to consumer price index inflation since 2010.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
The full weekly amount of basic State Pension would have been worth £139.10 in 2023-24 if it had been uprated by inflation (CPI) since 2010.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what estimates they have made, if any, of the cost savings that would result from increasing the minimum years of National Insurance contributions required for a full State Pension from 35 to 45.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
No such assessment has been made. The number of Qualifying Years required for a full State Pension strikes a balance between achieving wide coverage, maintaining the contributory principle and ensuring the overall affordability of the State Pension.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what estimate they have made of the savings to the Exchequer in total cost of paying UK State Pensions in 2023–24 if full state pensions for all newly retired individuals required a National Insurance record of 45 years instead of 35 years, assuming no purchase of additional voluntary years.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
We have not made any estimate of the savings to the Exchequer of paying UK State Pensions in 2023–24 if a full state pension for all newly retired individuals required a National Insurance record of 45 years instead of 35 years. There are currently no plans to review the qualifying criteria for the new State Pension.