§ Mr. DismoreTo ask the Secretary of State for Work and Pensions if he will make a statement on the trend in(a) average and (b) pensioner incomes as compared with (i) average and (ii) medium earnings, over the last 10 years. [173933]
§ Malcolm WicksSuch information as is available is in the following table.
Percentage growth in net equivalised income, both before housing costs have been taken into account 1582W (BHC) and after housing costs have been taken into account (AHC):
Change between 1994–1995 and 2002–2003 Percentage Whole population income BHC 24 Whole population income AHC 31 Pensioner income BHC 22 Pensioner income AHC 30 Pensioners' average income has increased at a rate similar to that of the population as a whole since 1994–95.
The figures in the table allow a valid comparison between pensioners and the population as a whole. They relate to household disposable income and cannot be compared directly with average earnings. A closer comparison is given by the mean net Before Housing Costs income received by pensioner units in their own right, which increased by 25 per cent. between 1994–95 and 2002–03. Over the same period, average earnings have seen a growth of 13 per cent.
Notes:
(a) The income growth figures in the table are estimates taken from the Households Below Average Income (HBAI) series. Data is derived from the Family Resources Survey. The latest date for which data is available is 2002–03. The earliest date for which data is available from the Family Resources Survey is 1994–95. For this reason, it has only been possible to present nine years' worth of data.
(b) The income measure used is mean weekly net (disposable) equivalised household income, consistent with HBAI conventions: income is adjusted to reflect the composition of the household, and is net of income tax, National Insurance contributions and Council Tax. Figures are quoted on both a Before Housing Costs and After Housing Costs basis, in line with HBAI conventions.
(c) Income figures in the table show growth in real terms, deflating by the Retail Prices Index all items excluding Council tax. The earnings figure shows growth in real terms, deflating by the Retail Prices Index all items (RPI) series.
(d) The source for earnings values is the Average Earnings Index, which is based on information obtained from the Office for National Statistics' Monthly Wages and Salary Survey. Average earnings are obtained by dividing the total amount paid by the total number of employees paid, including those employees on strike and temporarily absent. This information is then weighted and formed into an index.
(e) Part (ii) of the question has been interpreted as asking for median earnings, which is a figure that is not available from the Average Earnings Index.
(f) Both the Family Resources Survey and the Average Earnings Index cover Great Britain.