My Lords, by way of background, the additional state pension can be considered as an asset in a divorce settlement and the department is responsible for administering pension-sharing orders ordered by the courts. Basic state pension is not included as an asset to be shared, nor will the new single-tier pension be shareable. However, share orders in respect of additional state pension which are made before the single-tier pension is introduced will still stand and, from 2016, only the protected payment—the excess above the full single-tier pension—will be considered in any share order.
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To address the challenge put by the noble Baroness, Lady Hollis, on the combination effect, the substitution arrangements are, as we all know, extremely complex. There is no substantial need for them any more because
the vast majority of women will receive a pension in their own right. Pension sharing is a completely separate issue to substitution, and is to do with sharing the assets at the end of a marriage rather than lifting women out of poverty. Last year, the department was asked to undertake 10,000 pension valuations in respect of pension sharing, but actually received only 150 orders from the courts to share additional pension. Under single tier, pension sharing will be gradually withdrawn but the numbers that I have supplied indicate that this will not play much of a factor in protecting the pension position of divorcees.