Pension Credit (Hansard, 3 November 2003)

§ Mr. Willetts
To ask the Secretary of State for Work and Pensions if an individual who has recently purchased an annuity he deems to have voluntarily deprived themselves of capital in order to succeed in making a claim for pension credit. [134412]

§ Malcolm Wicks
Pension credit is designed to target more money on the poorest pensioners and to reward those making modest provision for their retirement. Where an individual has disposed of capital, consideration may be given as to whether the expenditure was reasonable in the circumstances of the case.
The main purpose of this is to guard against people giving away capital, (or an income) to increase entitlement. However, it is not necessarily the case that a pensioner would be able to increase their entitlement by purchasing an annuity. The actual income generated by the annuity would be taken into account whereas if the money was treated as capital the first £6,000 would be ignored.
If a person purchased a deferred annuity, (or another product which does not give them an income straightaway) for example, the deprivation rule may be considered in the light of the considerable body of case-law which has developed on similarly worded provisions.

§ Mr. Willetts
To ask the Secretary of State for Work and Pensions whether his Department deems an individual who has had a claim for pension credit turned down but then purchases(a) a level annuity, (b) an index-linked annuity, (c) a deferred annuity and (d) a 476W single premium whole life insurance policy to have voluntarily deprived themselves of capital in order to succeed in making a claim for pension credit. [134414]

§ Malcolm Wicks
An individual may be treated as still possessing capital in any of these circumstances, but it is not necessarily the case that they will be.
Decisions are made in the light of the circumstances of each case and the considerable body of case-law which has developed on similarly worded provisions.

§ Mr. Hoyle
To ask the Secretary of State for Work and Pensions how many pensioners have received an increase in their entitlement under the pension credit scheme in(a) Chorley, (b) the North West and (c) the UK. [134442]

§ Malcolm Wicks
The information requested is not available for Chorley or the North West region.
Around half of all pensioner households will be eligible for Pension Credit and stand to gain on average £400 a year (around £7 a week).
As my right hon. Friend the Secretary of State reported on 14 October 2003, Official Report, column 5WS, around 1.9 million pensioner households have already been awarded Pension Credit and over 1.15 million pensioners households will get more money than they would have before.

§ Mr. Hoyle
To ask the Secretary of State for Work and Pensions how many pensioners he estimates have yet to apply through the pension credit scheme in(a) Chorley, (b) the North West and (c) the UK; and what efforts are being made to simplify the pension credit process to make it easier for pensioners to claim their entitlement. [134443]

§ Malcolm Wicks
The information is not available in the format requested but we estimate that around 500,000 pensioner households in the North West and Merseyside are eligible for Pension Credit.
The application process has been designed to be straightforward. All pensioners need do is ring our Pension Credit Application Line. Calls are free on 0800 991234 (apart from some mobiles). The Pension Service then sends the completed application form to pensioners to check, sign and return, together with any necessary documentation. The Pension Service is able to offer alternative ways of applying to suit individual circumstances, including a textphone number and a paper application form. An application form can be downloaded from the Pension Credit website at www.thepensionservice.gov.uk. Pensioners can also be put in touch with The Pension Service's local service and can be seen face-to-face either in a local surgery or, where appropriate, in the pensioner's home.
The Pension Service provides a wide range of information and support on benefits to older people through our network of local service surgeries. Local Pension Service surgeries are held on a regular basis across all areas of the country, often in partnership with other organisations such as local authorities and Age Concern. Details of the most convenient surgery for individual pensioners and their carers can be obtained by telephoning 0845 60 60 2 65.
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The Pension Service wrote to all hon. Members at the end of July providing a full list of surgeries and opening times in individual constituencies; however I am happy to list here the regular surgeries that take place in the Chorley area:

Chorley One Stop shop, Council Offices, Union Street

Eccleston Library

Fosterfields Day Centre', Eaves Lane

Clayton Green Library

Buxton Library

Belmont Day Ward, Chorley Hospital

Adlington Library

Coppull Library

§ Mr. Keith Bradley
To ask the Secretary of State for Work and Pensions what estimate he has made of the number of residents in the Manchester, Withington constituency who(a) qualify for pension credit and (b) have so far applied for pension credit. [134510]

§ Malcolm Wicks
The information is not available in the format requested.
Around half of all pensioner households will be eligible for pension credit and stand to gain on average £400 a year (around £7 a week).
As at May 2003, the number of minimum income guarantee recipients in Manchester Withington was around £3,200. These are the latest figures available.
We intend from November to publish monthly reports on the progress of pension credit take-on, which will include information on the number of applications.
Notes:

1. The MIG figure has been rounded to the nearest hundred.

2. The MIG figure is based on a 5 per cent. sample, and therefore subject to a degree of sampling variation.

3. Government office region/parliamentary constituency are assigned by matching postcodes against the relevant ONS postcode directory.

4. MIG recipients are defined as income support benefit units where the claimant, and/or partner is aged 60 or over.

Source:
IAD Information Centre, 5 per cent. sample

§ Mr. Tynan
To ask the Secretary of State for Work and Pensions how many people in(a) Scotland and (b) the Hamilton, South constituency he estimates are entitled to (i) the income-related element and (ii) the savings-related element of the Pension Credit. [134573]

§ Malcolm Wicks
The information is not available in the format requested.
As at May 2003, the number of Minimum Income Guarantee recipients in Hamilton, South was around 2,800. These are the latest figures available.
Around 400,000 pensioner households are eligible for Pension Credit in Scotland.
We intend from November to publish monthly reports on the progress of Pension Credit take-on, which will include information on the number of successful applications.
Notes:

1. The MIG figure has been rounded to the nearest hundred.

2. The MIG figure is based on a 5 per cent. sample, and therefore subject to a degree of sampling variation.
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3. Government office region/parliamentary constituency are assigned by matching postcodes against the relevant ONS postcode directory.

4. MIG recipients are defined as Income Support benefit units where the claimant, and/or partner is aged 60 or over.

Source:
IAD Information Centre, 5 per cent. sample.

§ Mr. Love
To ask the Secretary of State for Work and Pensions if he will make a statement on administrative problems which have occurred for pensioners accessing Pension Credit. [134644]

§ Malcolm Wicks
There have been no administrative problems which have significantly affected pensioners' ability to apply for Pension Credit. The Pension Credit application line (0800 99 1234), which is the main method of applying, is working well and has taken over 1.1 million calls since it became operational on 7 April. Calls are free (except for some mobile phones) and friends and family can use the application line and apply on pensioners' behalf if they are unable to make the call themselves. The Pension Service is able to offer alternative ways of applying to suit individual circumstances, including a textphone number and a paper application form. An application form can be downloaded from the Pension Credit website at www.thepensionservice.gov.uk. Pensioners can also be put in touch with The Pension Service's local service and can be seen face to face either in a local surgery or, where appropriate, in the pensioner's home. Our marketing campaign, at the heart of which is a direct mail pack to pensioner households, is designed to produce a steady build up of Pension Credit applications. I refer the hon. Member to the written statement given by my right hon. Friend the Secretary of State (Mr. Andrew Smith) on 14 October 2003,Official Report, column 5WS.

§ Mr. Gardiner
To ask the Secretary of State for Work and Pensions what increase in expenditure on pensions in the parliamentary constituency of Brent North has resulted from the introduction of pension credits. [135121]

§ Malcolm Wicks
The information is not available in the format requested. Around half of all pensioner households will be eligible for pension credit and stand to gain on average £400 a year (around £7 a week).
It is estimated that pension credit will cost around an extra £2 billion a year.

§ Mr. Gardiner
To ask the Secretary of State for Work and Pensions for how many pensioners in the parliamentary constituency of Brent, North there will be an increase in their pension as a result of the introduction of the Pension Credit. [135122]

§ Malcolm Wicks
The information is not available in the format requested.
As at May 2003, the number of Minimum Income Guarantee recipients in Brent, North was around 2,400. These are the latest figures available.
Around 1.9 million pensioner households have already been awarded Pension Credit and over 1.1 million pensioner households will get more money than they would have before.
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We intend from November to publish monthly reports on the progress of Pension Credit take-on, which will include information on the number of successful applications.
Notes:

1. The MIG figure has been rounded to the nearest hundred.

2. The MIG figure is based on a 5 per cent. sample, and therefore subject to a degree of sampling variation.

3. Government office region/parliamentary constituency are assigned by matching postcodes against the relevant ONS postcode directory.

4. MIG recipients are defined as Income Support benefit units where the claimant, and/or partner is aged 60 or over.

Projected expenditure on disability and carers' benefits

Percentage of Gross Domestic Product

1997–98 2002–03 2010–11 2020–2021 2030–2031 2040–41 2050–51

Disability benefits 0.47 0.52 0.54 0.49 0.48 0.45 0.38

Carers' benefits ¹— 0.01 0.01 0.01 0.01 0.01 0.01

¹ Values lower than 0.005 per cent of GDP.

Notes:

1. Disability benefits are Disability Living Allowance and Attendance Allowance.

2. Carers' benefits cover Carers' Allowance only.

3. Projections are those underlying the Budget 2003 Economic and Fiscal Strategy Report, Annex A.

4. Gross Domestic Product assumptions up to 2005–06 are as underlying the Budget 2003 Economic and Fiscal Strategy Report, thereafter real economic growth is assumed to be 2.0 per cent. per year.

5. Current government policy on uprating of benefits is assumed throughout.

6. Expenditure is for Great Britain.

7. Figures are rounded to the nearest 0.01 per cent. of Gross Domestic Product.

§ Mr. Willetts
To ask the Secretary of State for Work and Pensions what estimate he has made of public expenditure on(a) the basic state pension, (b) SERPS and (c) the state second pension as a percentage of gross domestic product in (i) 1997–98, (ii) 2002–03, (iii) 2010,

Projected expenditure on basic state pension, Serps and second state pension

Percentage of Gross Domestic Product

1997–98 2002–03 2010–11 2020–2021 2030–2031 2040–41 2050–51

Basic state pension 3.7 3.6 3.5 3.1 3.2 2.9 2.4

SERPS 0.4 0.6 0.8 0.8 0.6 0.4 0.2

Second State Pension 0 0 0.1 0.2 0.5 0.9 1.5

Notes:

1. Figures for 2010 onward are consistent with the Government Actuary's Quinquennial Review of the National Insurance Fund laid before parliament on 27 October 2003. 1997/98 is based on DWP outturn information and 2002–03 is based on estimated outturn information.

2. All figures expressed as a percentage of Gross Domestic Product

3. Expenditure is for Great Britain

4. The amounts shown for SERPS and Second State Pension in the above table only include projected expenditure on additional retirement pension. Amounts paid with incapacity benefit and widows'/survivors' benefits are excluded. Expenditure on contracted-out rebates, for employees who contract-out of second state pension, is not included in the figures shown above.

5. All projections assume current government policy remains in place until the end of the period. The estimates for basic state pension are based on uprating (in April) of an average 0.25 per cent. above the relevant (previous September) 12 months' Retail Price Index. This is to reflect the current policy for uprating the basic state pension by 2.5 per cent. in years where RPI uprating would be lower than 2.5 per cent.

Projected expenditure on disability and carers' benefits
Percentage of Gross Domestic Product
	1997–98	2002–03	2010–11	2020–2021	2030–2031	2040–41	2050–51
Disability benefits	0.47	0.52	0.54	0.49	0.48	0.45	0.38
Carers' benefits	¹—	0.01	0.01	0.01	0.01	0.01	0.01
¹ Values lower than 0.005 per cent of GDP.

Projected expenditure on basic state pension, Serps and second state pension
Percentage of Gross Domestic Product
	1997–98	2002–03	2010–11	2020–2021	2030–2031	2040–41	2050–51
Basic state pension	3.7	3.6	3.5	3.1	3.2	2.9	2.4
SERPS	0.4	0.6	0.8	0.8	0.6	0.4	0.2
Second State Pension	0	0	0.1	0.2	0.5	0.9	1.5