§ Mr. Newtonasked the Secretary of State for Employment what allowance is made for local rates and water authority charges in computing the retail price index for pensioners; and what is the corresponding estimate of the total amount of these rates and charges paid by such people.
§ Mr. BoothThe retail price indices calculated for pensioners do not include housing costs and therefore make no allowance for local rates and water charges. These indices cover only about one-third of all households in which the head is retired, namely those in which a national insurance retirement or equivalent pension accounts for 75 or more per cent. of the total household income. The great majority of these poorer pensioner households are eligible for substantial rebates on their local rate payments and it was found in the Family Expenditure Survey of 1974 that their average weekly expenditure on general household rates was very close to £1 after deducting rebates. I regret that information is not available from which to estimate the expenditure on water rates.