HC Deb 16 February 1999 vol 325 cc673-4W
Mr. Webb

To ask the Secretary of State for Social Security if he will estimate how many pensioners would receive income support in each of the next five years assuming(a) that the April 1998 level of income support was indexed to prices and (b) that the Government implement their proposed minimum income guarantee for pensioners. [70596]

Mr. Timms

The information is not available in the format requested. Such information as is available is in the table.

Thousand
Estimated number of pensioner units receiving income support assuming:
(a) Price indexation of income support (b) Implementation of MIG
1999–2000 1,495 1,560
2000–01 1,608 1,673
2001–02 1,722 1,787

Notes:

1. Pensioner benefit unit means a single person aged 60 or over, or a couple where one member is aged 60 or over.

2. Figures are not available for years beyond 2001–02. The figures are estimates of the average number of cases in each financial year. Figures are rounded to the nearest 1,000.

3. Figures given for part (b) are consistent with those published in the November 1998 pre-budget report.

4. The figures exclude pensioners in residential care and nursing homes.

Mr. Webb

To ask the Secretary of State for Social Security, pursuant to his answer of 13 January 1999,Official Report column 222, what assumptions about post-retirement indexation of (i) the basic state pension, (ii) the state second pension and (iii) the minimum income guarantee underlie his estimates of the numbers of pensioners on income support. [70803]

Mr. Timms

The estimates provided assume that the basic State Pension and State Second Pension are indexed in line with prices when in payment, and that the Minimum Income Guarantee is indexed in line with the growth in average earnings (assumed to be 1.5 per cent. per year above the growth in prices).

The actual level of indexing of the Minimum Income Guarantee in future years will depend on the prevailing economic conditions. We have stated that our long-term objective is to increase the Minimum Income Guarantee in line with average earnings, as resources allow, so that even the least well off pensioners can share in rising national prosperity.