HC Deb 09 December 1999 vol 340 cc596-7W
Mr. Field

To ask the Secretary of State for Social Security, pursuant to his oral answer to the hon. Member for Havant (Mr. Willetts) on 29 November 1999,Official Report, column 13, by how much below 3.5 million he expects the number of pensioners on means-tested benefits will be reduced by 2050 as a result of the proposals in the Green Paper on the stakeholder pension and the second state pension. [102064]

Mr. Rooker

By 2050, it is estimated that there will be around 15.8 million pensioners. Without a change to current policies it is estimated that approximately one in three pensioner units (which could be either a single person or a couple) would retire onto the means-tested minimum income guarantee. This would include some people who had worked or cared for someone throughout their working life.

The proposals in the Government's Green Paper "Partnership in Pensions" are designed to ensure that someone with a full working life, or years covered by credits, will receive a pension on retirement above the minimum income guarantee.

The impact of the proposals will depend on a variety of factors, including employment records and additional voluntary savings. Our proposals seek to promote behavioural changes through the spread of low cost funded second pensions, improved pensions education, and the greater reward in retirement from helping people under pension age move from benefits to work.

For instance, with additional voluntary savings of 5 per cent., the figure of one in three pensioner units retiring onto the minimum income guarantee would fall to approximately one in five in 2050.

Mr. Field

To ask the Secretary of State for Social Security, pursuant to his answer to the hon. Member for Canterbury (Mr. Brazier) of 29 November 1999,Official Report, column 7W, on means-tested benefits, if he will break down respectively the 8 million on means-tested benefits in 1997 and the 7.9 million expected to be on means-tested benefits (a) by those above or below pensionable age and (b) of those below pensionable age, the proportion in receipt of in-work benefits. [102062]

Mr. Bayley

The information is in the tables.

The proportion of people above and below age 60, in receipt of one or more means-tested benefits as at May 1997
Number
Proportion under age 60 60% (4.8 million)
Proportion age 60 and over 40% (3.2 million)
Proportion under age 60 in receipt of in-work benefits 16%

The estimated proportion of people in receipt of one or more means tested benefits or tax credits as for 2001–02
Number
Proportion under age 60 64% (5.0 million)
Proportion age 60 and over 36% (2.9 million)
Proportion under age 60 in receipt of in-work benefits 26%

Notes:

1. Means-tested benefits are Income Support, Income Based Jobseeker's Allowance, Family Credit, Disability Working Allowance, Housing Benefit and Council Tax Benefit. Working Families Tax Credit is included for the 2001–02 estimates.

2. Figures are rounded to the nearest 100,000.

3. Figures refer to benefit units which may be a single person or couple.

4. Overlap between benefits have been taken into account.

5. Council Tax Benefit cases do not include second adult rebate cases.

6. Sample sizes:

Income Support: 5 per cent.

Family Credit: 5 per cent.

Disability Working Allowance: 100 per cent.

Housing Benefit and Council Tax Benefit: 1 per cent.

7. Proportion under age 60 in receipt of in-work benefits is based on numbers receiving Family Credit and Disability Working Allowance for 1997 and Working Families Tax Credit and Disabled Persons Tax Credit for 2001–02. In order to compare the years on the same basis, it excludes those in work receiving Housing Benefit and/or Council Tax Benefit only, as forecasts isolating this particular group are not available for 2001–02 figures (such recipients are included in the overall totals).

Sources:

1. Income Support Statistics Quarterly Enquiry, May 1997.

2. Jobseeker's Allowance Statistics Quarterly Enquiry, May 1997.

3. Family Credit 5 per cent. sample of awards.

5. Disability Working Allowance 100 per cent. count of claims.

5. Housing Benefit Management Information System, annual 1 per cent. sample of claimants without Income Support/JSA(IB), taken at the end of May 1997.