State Retirement Pensions

Work and Pensions written question – answered on 6th April 2010.

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Photo of Steve Webb Steve Webb Shadow Secretary of State for Work and Pensions

To ask the Secretary of State for Work and Pensions what estimate she has made of the number of recipients of the state second pension whose entitlement includes years past 2002 when they were in receipt of incapacity benefit; how much extra state second pension is paid per week per recipient in respect of such years; and what estimate she has made of the expenditure on such accrued rights in 2009-10.

Photo of Angela Eagle Angela Eagle The Minister of State, Department for Work and Pensions, Member, Labour Party National Executive Committee

holding answer 25 March 2010

State second pension expenditure in 2009-10 due to the accrual of rights via receipt of incapacity benefit is estimated at around £300 million in 2009-10 price terms.

We are unable to provide information relating to the number of people to whom this expenditure relates or the average amounts in payment as modelling of state second pension expenditure is performed on an aggregate basis and does not take account of individual entitlements.

In 2007-08, the latest period for which data are available, 900,000 women and 1,300,000 men of working age accrued rights to state second pension through receipt of incapacity benefit.

Notes:

1. Figures have been rounded to the nearest £10 million.

2. Forecasts of state second pension/state earnings related pension scheme are based on the Budget Report 2010 forecasts. Published expenditure tables can found at the following link:

http://research.dwp.gov.uk/asd/asd4/medium_term.asp

3. Figures for 2007-08 are provisional as they will be subject to change as further information about national insurance contributions becomes available.

Sources:

Strategy Directorate modelling and Lifetime Labour Market Database, 2007-08.

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