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National Insurance Contributions: Rebates

Volume 461: debated on Monday 18 June 2007

To ask the Secretary of State for Work and Pensions what his latest estimate is of the number of people in contracted-out defined benefit schemes in each year from 2001-02 to 2015-16; and if he will make a statement. (141206)

The information is in the following table.

Membership of contracted-out defined benefit schemes

Tax year

Estimates of number of people contracted out (million)

2001-02

7.7

2002-03

7.6

2003-04

7.6

2004-05

7.6

2005-06

7.6

2006-07

7.6

2007-08

7.5

2008-09

7.5

2009-10

7.4

2010-11

7.3

2011-12

7.2

2012-13

7.1

2013-14

7.0

2014-15

6.9

2015-16

6.8

Notes:

(i) Source: Actual figures from Second Tier Pension Provision Statistics for 2001-02 2003-04 and then estimates.

(ii) Figures are for UK.

To ask the Secretary of State for Work and Pensions what his latest estimate is of the cost of contracted-out rebates for (a) defined benefit and (b) defined contribution pension schemes in each year from 1997 to 2007-08; and if he will make a statement. (141207)

The information is in the following table:

Estimated cost of contracted out rebates

£ billion

Tax year

Defined Benefit

Defined Contribution

1997-98

4.9

2.8

1998-99

5.1

2.8

1999-2000

5.2

3.1

2000-01

5.5

3.3

2001-02

5.7

3.4

2002-03

6.5

4.1

2003-04

6.7

3.7

2004-05

6.7

3.2

2005-06

7.0

2.9

2006-07

7.3

2.7

2007-08

7.8

1.9

Notes: 1. Rebate expenditure is estimated in all years. 2. Figures are for UK and expressed in cash terms.

To ask the Secretary of State for Work and Pensions what his latest estimate is of the average pension value for individuals in defined benefit schemes of the contracted out rebates for each year from 2007-08 to 2050-51. (141569)

Due to the way the funding of contracted-out defined benefit schemes works, the value of the rebate does not necessarily equate to a pension value. The information requested is not, therefore, available.