HC Deb 09 November 1998 vol 319 cc90-1W
Mr. Webb

To ask the Secretary of State for Social Security, pursuant to his answer of 3 November 1998,Official Report, columns 547–48, on pension incomes, if he will provide corresponding figures based on income excluding income from capital; and if he will provide a more detailed breakdown of the results for those below £70 per week. [58881]

Mr. Denham

The information is in the table.

Pensioner benefit units disqualified from the proposed minimum income guarantee because of excess capital but who have incomes below Income Support levels, excluding income from capital, by band of income
Income Pensioners
Up to £49.99 250,000
£50 to £59.99 150,000
£60 to £69.99 220,000
£70 and over 180,000
Total 600,000

Notes:

  1. 1. Estimates are based on the 1995–96 Family Resources Survey and are almost certainly subject to a degree of error; the true figures could be higher or lower than those given.
  2. 2. This estimate should be treated with some caution as it is based on small sample sizes.
  3. 3. Estimates have been rounded to the nearest 10,000 cases.
  4. 4. Sample sizes are too small to give a breakdown below £49.99.
  5. 5. The estimates of income used here exclude income from savings and 'tariff income'. They also exclude any pensioners in full time work.
  6. 6. A pensioner, for income support purposes, is a single person aged 60 or over, or a couple (married or living as married) where at least one of them is aged 60 or over.
  7. 7. Of the total of 600,000, around 55 per cent. (340,000) have savings of over £20,000 and of these, approximately 190,000 have savings of more than £50,000.

Estimated public expenditure effects of each of the proposed reforms over this period and in the long term
£ million
Measure 1999–2000and 2000–01 2001–02 2002–03 2003–04 Long term
Reform of Incapacity Benefit 0 -90 -155 -205 -650
-700
Reform of Severe Disablement Allowance 0 -10 -20 -35 -100
-150
Disability Income Guarantee 0 +60 +65 +70 +70
Disability Living Allowance: higher rate mobility component for 3 and 4 year olds 0 +15 +15 +15 +15

Notes:

1. There are no effects in the first two years because the measures are not planned for implementation before 2001.

2. There will also be administration costs arising from the implementation of these changes, the reform of the All Work Test, and measures to take forward a more active modem service for claimants of Incapacity Benefit, Disability Living Allowance and Attendance Allowance.