HC Deb 18 March 1998 vol 308 cc640-4W
Mr. Webb

To ask the Secretary of State for Social Security which organisation is carrying out research for her Department on the non take-up by pensioners of their entitlement to income support; at what cost and over what timescale; and if she will place a copy of the organisation's proposed research methodology in the Library. [34691]

Mr. Denham

[holding answer 16 March 1998:] Research has been commissioned comprising in-depth interviews with pensioners currently claiming and not claiming, but potentially eligible for, Income Support (IS). Pensioners will be selected to cover key demographic characteristics. The interviews will explore the reasons for not claiming Income Support, and the views of claimants and non-claimants to give an insight into what encourages, as well as discourages, claims for IS.

This is being followed by a quantitative survey of eligible non-claimant pensioners to identify the relative importance of the various factors deterring potential claimants; and to assess whether different factors are important for different sub-groups; and whether different groups of pensioner non-claimants are experiencing different levels of hardship.

Finally, the project will also include focus groups with advice agencies.

Contracts worth a total of £282,000 have been awarded to Social and Community Planning Research and the Office for National Statistics.

The project was begun at the end of last year and will take a year to complete.

An estimated one million pensioners are not taking up their entitlement to IS and my right hon. Friend the Secretary of State recently announced details of a number of pilot schemes to be run from April this year to find the best way to provide more automatic help to the poorest pensioners.

The pilots will start next month and run for six months in Glasgow, York, Preston, Stroud, Lambeth, East Renfrewshire, Torbay, Torfaen and South Staffordshire local authorities.

The pilots will have two main objectives. They will test the best ways of finding potential IS claimants by matching records held centrally and locally. The pilots will then test the best ways of reaching potential claimants by visiting them at home, ringing them or writing to them.

Mr. Kirkwood

To ask the Secretary of State for Social Security what(a) percentage and (b) number of single pensioners have a total income of at least £100 per week from (i) all sources, (ii) sources not including the state pension and (iii) sources not including any state benefits. [33524]

Mr. Denham

The information is set out in the table.

Weekly income of pensioner couples (£) in 1995–96
Definition of income At least£200 At least £160 At least £140
Gross income from all sources Number 1,450,000 1,950,000 2,300,000
Percentage 53 73 86
Gross income excluding State pensions Number 800,000 950,000 1,100,000
Percentage 29 36 42
Gross income excluding State benefits Number 700,000 850,000 950,000
Percentage 25 32 36

Notes:

1. The information is based on gross unequivalised weekly income before housing costs and benefit income at July 1995 prices. Reported incomes from the State pension and all benefits were subtracted from gross income to give the income distribution shown. The results are based on survey respondents' identification of different elements of benefit income, and therefore are subject to misreporting.

2. The Pensioners' Income Series gives estimates for pensioner units. A pensioner unit is defined as a single person over State Pension Age (SPA) or a couple where the man, defined as the head, is over SPA.

3. Numbers of pensioner units are rounded to the nearest 50,000, percentages to the nearest 1 per cent.

4. The Pensioners' Incomes Series 1995–96 is to be revised, owing to a number of inaccuracies. The revised version of the publication will be issued as soon as possible. The figures above are not affected by these problems.

Source:

The Pensioners' Incomes Series.

Mr. Kirkwood

To ask the Secretary of State for Social Security (1) if she will estimate how many couples aged over 60 years would become eligible for income support if the applicable amount, including the pensioner premium was(a) £200, (b) £160 and (c) £140 assuming (i) no change in capital limits and (ii) an upper capital limit of £16,000 and lower capital of £10,000; [33520]

(2) if she will estimate the cost of increasing the applicable amount, including the pensioner premium, for

Single pensioner with weekly income of at least £100 in 1995–96
Definition of income Number Percentage
Gross Income from all sources 3,050,000 70
Gross Income excluding State pensions 1,050,000 25
Gross Income excluding State benefits 700,000 16

Notes:

1. The information is based on gross unequivalised weekly income before housing costs and benefit income at July 1995 prices. Reported incomes from the State pension and all benefits were subtracted from gross income to give the income distribution shown. The results are based on survey respondents' identification of different elements of benefit income, and therefore are subject to misreporting.

2. The Pensioners' Income Series gives estimates for pensioner units. A pensioner unit is defined as a single person over State Pension Age (SPA) or a couple where the man, defined as the head, is over SPA.

3. Numbers of pensioner units are rounded to the nearest 50,000, percentages to the nearest 1 per cent.

4. The Pensioners' Incomes Series 1995–96 is to be revised, owing to a number of inaccuracies. The revised version of the publication will be issued as soon as possible. The figures above are not affected by these problems.

Source:

The Pensioners' Incomes Series.

Mr. Kirkwood

To ask the Secretary of State for Social Security what(a) percentage and (b) number of pensioner couples have a total income of at least (i)£200 per week, (ii)£160 per week and (iii)£140 per week from (1) all sources, (2) sources not including the state pension and (3) sources not including any state benefits. [33525]

Mr. Denham

The information is set out in the table.

income support for couples aged over 60 years to (a) £200, (b) £160 and (c) £140 assuming (i) no change in capital limits and (ii) an upper capital limit of £16,000 and lower capital of £10,000. [33521]

Mr. Keith Bradley

Not all the information is available. Figures for total numbers eligible could be produced only at disproportionate cost. The information set out in the tables is based on the numbers who, on current take-up levels, could be expected to claim.

Estimated extra number1 of couples aged 60 or over claiming income support if the applicable amount, including the pensioner premium, was increased
Existing capital limits Capital limits of £10,000 and £16,000
Applicable amount of £200 per week 710,000 785,000
Applicable amount of £160 per week 500,000 550,000
Applicable amount of £140 per week 290,000 330,000
1Rounded to the nearest 5,000

Estimated cost1 of increasing the applicable amount in income support for couples aged 60 and over
£billion
Existing capital limits Capital limits of £10,000 and£16,000
Applicable amount of £200 per week 4.1 4.4
Applicable amount of £160 per week 2.0 2.1
Applicable amount of £140 per week 1.0 1.1
1Rounded to the nearest £100 million.

Note:

These figures include costs incurred in Housing Benefit and Council Tax Benefit due to the alignment of the applicable amounts in these benefits with those in Income Support. It has been assumed that the changes in the capital limits apply only to couples where at least one is aged 60 or over.

Source:

May 1996 Income Support Quarterly Statistical Enquiry, 1995–96 Family Resources Survey.

Mr. Kirkwood

To ask the Secretary of State for Social Security (1) if she will estimate how many single people aged over 60 years would become eligible for income support if the applicable amount, including the pensioner premium, was £100 assuming(a) no change in capital limits and (b) an upper capital limit of £16,000 and lower capital limit of £10,000; [33522]

(2) if she will estimate the cost of increasing the applicable amount, including the pensioner premium, for income support for single people aged over 60 years to £100 assuming (a) no change in capital limits and (b) an upper capital limit of £16,000 and lower capital limit of £10,000. [33523]

Mr. Keith Bradley

The information is not available in the format requested. Figures for total numbers eligible could be produced only at disproportionate cost. Information is available based on the numbers who, on current take-up levels, could be expected to claim.

The estimated extra number of single people aged 60 or over claiming Income Support and the associated cost if the applicable amount, including the pensioner premium, was £100 is:

  1. (a) 790,0002 with no change in capital limits at cost of £3 billion3; and
  2. (b) 935,0002 with an upper capital limit of £16,000 and a lower capital limit of £10,000 at a cost of £3.3 billion3.

These figures include costs incurred in Housing Benefit and Council Tax Benefit due to the alignment of the applicable amounts in these benefits with those in Income Support.

Source: Income Support Quarterly Statistical Inquiry May 1996 and Family Resources Survey 1995–96.

Notes:

  1. 1. Changes in capital limits are assumed to apply only to single people aged 60 or over for the purposes of the costings.
  2. 2. Rounded to the nearest 5,000.
  3. 3. Rounded to the nearest £100 million.

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