HC Deb 28 February 1994 vol 238 cc615-7W
25. Mr. Jonathan Evans

To ask the Secretary of State for Social Security what is the estimated cost of uprating the retirement pension in 1994–95.

Mr. Hague

The estimated cost is £717 million.

Mr. Jim Cunningham

To ask the Secretary of State for Social Security what proposals he has for a real increase in pensions in the current year.

Mr. Hague

My right hon. Friend the Secretary of State announced the full uprating of pensions in line with

Number of retirement pensions in Great Britain
Category of pension Number with retirement pension Number with less than 100 per cent. basic retirement pension Percentage receiving less than 100 per cent. Average percentage for persons in receipt of less than 100 per cent.
All retirement pensions 9,581,660 1,085,450 11 62
Category A men 3,293,560 161,030 5 76
Category A women 2,336,620 666,780 29 56
Category BL wives 1,330,740 45,790 3 74
Category ABL wives 628,490 2,930 — 85
Category B widows 1,884,860 61,530 3 79
Graduated pensions only 134,130 134,130 100 N/a
Additional pensions only 13,260 13,260 100 N/a
N/a—Not available.

The percentage of people residing overseas
Category of pension Number with retirement pension Number with less than 100 per cent. basic retirement pension Percentage receiving less than 100 per cent. Average percentage for persons in receipt of less than 100 per cent.
All retirement pensions 613,860 550,120 90 14
Category A Men 234,880 212,540 90 17
Category A Women 154,540 140,660 91 15
Category BL Wives 108,690 98,770 91 6
Category ABL Wives 32,190 24,520 76 1
Category B Widows 75,690 65,760 87 13
Graduated pensions only 7,040 7,040 100 N/A
Additional pension only 830 830 100 N/A

Notes:

1 Figures given are for people of contributory Retirement Pension (including Graduated Retirement Pension or Additional Pension only) at 31 March 1993 excluding widowers receiving Category B pension (total number at 31 March 1993 is 750).

2 Category A pension is payable on a person's own contributions.

3 Category BL pension is payable to a married woman based on her husband's contributions—the standard rate is approximately 60 per cent. of the standard Category A rate.

4 Category ABL pension is payable to a married woman based on her own and her husband's contributions—the standard rate is the same as that for Category BL.

5 Category B pension is payable to surviving spouses on the basis of their late spouses' contributions—the standard rate is the same as that for Category A.

Mr. Rendel

To ask the Secretary of State for Social Security, pursuant to the Budget speech of 30 November,Official Report, column 1037, if pensioners who do not receive 100 per cent. of a state pension will receive the full 50p addition in respect of VAT on fuel; and if he will make a statement.

Mr. Hague

The extra help towards VAT on fuel will be included in the standard rate of basic retirement pension. The rate of pension is reduced where basic pension entitlement is less than 100 per cent. This will have the effect of reducing the extra help in proportion to the percentage rate of basic pension entitlement.

The standard married woman's rate of basic retirement pension, based on her husband's contributions, will be increased by 20p per week thereby providing pensioner couples in receipt of the standard rate with an overall additional increase of 70p per week.

inflation from April, plus extra help with the cost of VAT on fuel, amounting to 50p a week for single pensioners and 70p for couples.

Mr. Rendel

To ask the Secretary of State for Social Security (1) what percentage of people in receipt of state pensions receive less than 100 per cent. of the full pension; and what number of people this represents;

(2) what is the average percentage of state pension received by those in receipt of less than 100 per cent. of the full state pension.

Mr. Hague

The available information is in the tables.

As my right hon. and learned Friend the Chancellor of the Exchequer made clear in his speech, all pensioners on income support will receive the full 50p single and 70p for couples, whether or not they are entitled to a reduced rate retirement pension.

Mr. Rendel

To ask the Secretary of State for Social Security what gross weekly cost his Department estimates will be incurred by the increase of all state pensions to compensate for the imposition of VAT on domestic fuel in each week during April.

Mr. Hague

The information is not available in the form requested.

It is estimated that the average gross weekly cost from 11 April, when the 1994 uprating will become effective, will be approximately £4 millon.