HC Deb 20 July 1993 vol 229 cc194-7W
Mr. Richards

To ask the Secretary of State for Social Security what is the latest information held about pensioners' income; and if he will make a statement.

Mr. Lilley

I have just published figures that show that since 1979, on average, pensioners' total incomes grew faster than that of the population as a whole.

The figures in the tables are based on the 1990–91 pensioners' income series. They show that since 1979 pensioners' average incomes have increased by 42 per cent. and by 54 per cent after deducting housing costs. In particular, more pensioners are now benefiting from occupational pensions. In 1979 only 43 per cent. of pensioners had an income from a company pension. By 1990–91, this proportion had increased to 61 per cent, receiving an average of £60.80 a week.

Copies of this reply will be placed in the Library.

(c) All pensioner units
Income source Average income (£ per week. January 1991 prices)
1979 1990 1990–1 1990 1990–1
Earnings 11.90 9.10 10.90 -24 -9
Benefit income 63.20 73.10 74.20 16 17
Investment income 11.20 28.90 30.30 158 171
Occupational pension 16.60 30.40 32.90 84 98
Other income 0.60 0.90 0.90 45 37
Total gross income 103.50 142.40 149.10 38 44
Deductions 13.80 22.0 22.20 59 60
Total net income1 89.70 120.30 127.00 34 42
Total net income (after housing costs)2 74.80 109.30 115.40 46 54
1 Median net income at 1991 prices, was £63.30 in 1979, £75.20 in 1989, £77.00 in 1990, and £79.50 in 1990–91.
2 Median net income after housing costs, at 1991 prices, was £56.60 in 1979, £57.50 in 1989, £63.00 in 1990 and £62.80 in 1990–91.

(1) Components may not sum to totals owing to rounding.

(2) * denotes a figure of less than 0.5 per cent.

(3) All average amounts are means unless otherwise stated.

(4) All figures are before housing costs unless otherwise stated.

(5) Pensioner units are defined as single people over state pension age and couples in which the husband is over state pension age.

(6) 1990–91 denotes estimates from the combined sample for 1990 and 1991. One quarter of the 1991 family expenditure survey sample has been omitted because of problems in the collection of information on community charge payments following the delayed issue of bills in April 1991. As a result, the sample size in that year is too small to provide reliable estimates of pensioners' incomes. For this reason, the remaining data for 1991 have been combined with that for 1990.

Table 2: The proportion of pensioner units with investment income, and the average amount for those in receipt
(a) All pensioner units
Percentage of units with investment income Average amount for those in receipt (£ per week, 1991 prices) Per cent growth in average amount since 1979
1979 1990 1990–91 1979 1990 1990–91 1990 1990–91
Pensioner couples 71 83 83 22.70 50.40 54.10 122 138
Single pensioners 57 70 71 15.20 30.20 30.30 99 100
All pensioner units 62 75 76 18.20 38.60 40.10 112 120

(b) Recently-retired pensioner units
Percentage of units with investment income Average amount for those in receipt (£ per week, 1991 prices) Per cent growth of average amount since 1979
1979 1990 1990–91 1979 1990 1990–91 1990 199–91
Pensioner couples 73 83 83 24.10 61.50 56.80 155 135
Single pensionsers 60 65 72 14.10 41.80 39.00 197 177
All pensioner units 68 75 78 20.40 54.40 49.90 167 145

Notes:

(1) Recently-retired pensioner units are defined as: single women aged 60–64; single men aged 65–69; and couples in which the husband is aged 65–69.

(2) All average amounts are means.

(3) '1990–91' denotes estimates from the combined sample for 1990 and 1991. One quarter of the 1991 family expenditure survey sample has been omitted because of problems in the collection of information on community charge payments following the delayed issue of bills in April 1991. As a result the sample size in that year is too small to provide reliable estimates of pensioners' incomes. For this reason, the remaining data for 1991 have been combined with that for 1990.

Table 3: The proportion of pensioner units with income from occupational pensions, and the average amount for those in receipt
(a) All pensioner units
Percentage of units with occupational pension income Average amount for those in receipt (£ per week, 1991 prices) Percentage growth of average amount since 1979
1979 1990 1990–91 1979 1990 1990–91 1990 1990–91
Pensioner couples 65 71 71 48.90 73.30 79.40 50 62
Single pensioners 32 54 56 32.40 44.20 44.30 36 37
All pensioner units 43 60 61 41.10 57.90 60.80 41 48

(b) Recently-retired pensioner units
Percentage of units with occupational pension income Average amount for those in receipt (£ per week, 1991 prices) Percentage growth of average amount, since 1979
1979 1990 1990–91 1979 1990 1990–91 1990 1990–91
Pensioner couples 68 78 74 57.50 86.30 82.20 50 43
Single pensioners 37 62 61 34.90 50.30 51.00 44 46
All pensioner units 55 71 69 51.20 73.90 71.60 44 40

(1) Estimates of the percentage of pensioner units in receipt of occupational pension income are based upon data from the family expenditure survey and the GAD survey of occupational pension schemes. Due to this use of additional information, it is not possible to derive the overall average occupational receipt from the estimates in table 3.

(2) Recently-retired pensioner units are defined as: single women aged 60–64; single men aged 65–69; and couples in which the husband is aged 65–69.

(3) All average amounts are means.

(4) "1990–91" denotes estimates from the combined sample for 1990 and 1991. One quarter of the 1991 family expenditure survey sample has been omitted because of problems in the collection of information on community charge payments following the delayed issue of bills in April 1991. As a result, the sample size in that year is too small to provide reliable estimates of pensioners' incomes. For this reason, the remaining data for 1991 have been combined with that for 1990.

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