HC Deb 14 May 1987 vol 116 cc360-4W
Mr. Meacher

asked the Secretary of State for Social Services what has been, for a worker on average earnings retiring in (a) 1974, (b) 1979, (c) 1984, and (d) 1987 (i) the level of the retirement pension, (ii) average occupational pension, (iii) the state earnings related pension scheme pension, where applicable, (iv) average investment income for a worker on average earnings.

Mr. Major

[pursuant to his reply, 22 April 1987 c. 632]: The available information is shown in the tables. Table 1 gives the level of the single person's full rate basic pension at uprating dates in each of the years specified, and the level of state earnings related pension awarded to a man on average earnings retiring on 6 April of each of those years. I refer the hon. Member to my reply of 12 January 1987 at columns 123–24 for the assumptions governing these figures. Table 2 shows the average amounts of occupational pension and investment income received weekly by all tax units in the specified age groups in each of the years for which information is available. It is not possible to identify those people retiring in the years specified, nor is information on previous earnings histories available from the family expenditure survey data upon which this table is based.

Table 1
£ per week
Basic pension1 2 State Earnings Related Pension
1974 10.00 n/a
1979 19.50 0.95
1984 35.80 10.80
1987 39.50 20.05

Table 23
£ per week
Occupational pension Investment income
1974 4.00 3.10
1979 10.70 6.30
1984 19.00 9.00
19854 23.40 14.00
1 Basic pension entitlement does not depend upon an individual's earnings history but upon his national insurance contribution record over his working life.
2 Graduated pension and increments for deferred retirement are excluded.
3 The tax units in Table 2 may be single men aged 65–69, single women aged 60–64 or married couples where the husband is 65–69. Due to small sample sizes it is necessary to provide data for 5 year age groups rather than for men or women reaching state pensionable age in the years specified.
4 Latest date for which information is available.

Sir Brandon Rhys Williams

asked the Secretary of State for Social Services if he will publish figures setting out the components of net weekly spending power in November 1985 and November 1986 for each of a single and a married retirement pensioner, assuming (a) £15 a week rent and £7 rates and (b) £30 a week rent and £10 a week rates, and with the following amounts of income in addition to the state basic pension: £0, £5, £10, £15, £20, £30, £40, £50 and £100 respectively.

Components of net weekly spending power for pensioners receiving housing benefit
Table 1: 1985. Rent £15.00, Rates £7.00
November 1985
Single Pensioner
Income (gross) Tax Rent Rent rebate Rates Rate rebate Disposable income
£ £ £ £ £ £ £
38.30 Nil 15.00 14.13 7.00 6.25 36.68
43.30 0.27 15.00 11.63 7.00 5.25 37.91
48.30 1.77 15.00 9.13 7.00 4.25 37.91
53.30 3.27 15.00 7.62 7.00 3.58 39.23
58.30 4.77 15.00 6.17 7.00 2.93 40.63
68.30 7.77 15.00 3.27 7.00 1.63 43.43
78.30 10.77 15.00 Nil 7.00 Nil 45.53
88.30 13.77 15.00 Nil 7.00 Nil 52.53
138.30 28.77 15.00 Nil 7.00 Nil 87.53

Pensioner Couple
Income (gross) Tax Rent Rent rebate Rates Rate rebate Disposable income
£ £ £ £ £ £ £
61.30 Nil 15.00 13.88 7.00 6.15 59.33
66.30 Nil 15.00 11.38 7.00 5.15 60.83
71.30 1.46 15.00 8.93 7.00 4.17 60.93
76.30 2.96 15.00 7.48 7.00 3.52 62.34
81.30 4.46 15.00 6.03 7.00 2.87 63.74
91.30 7.46 15.00 3.13 7.00 1.57 66.54
101.30 10.46 15.00 Nil 7.00 Nil 68.84
111.30 13.46 15.00 Nil 7.00 Nil 75.84
161.30 28.46 15.00 Nil 7.00 Nil 110.84

Table 2: 1985, Rent £30.00, Rates £10.00
November 1985
Single Pensioner
Income (gross) Tax Rent Rent rebate Rates Rate rebate Disposable income
£ £ £ £ £ £ £
38.30 Nil 30.00 23.13 10.00 8.05 29.48
43.30 0.27 30.00 20.63 10.00 7.05 30.71
48.30 1.77 30.00 18.13 10.00 6.05 30.71
53.30 3.27 30.00 16.62 10.00 5.38 32.03
58.30 4.77 30.00 15.17 10.00 4.73 33.43
68.30 7.77 30.00 12.27 10.00 3.43 36.23
78.30 10.77 30.00 9.37 10.00 2.13 39.03
88.30 13.77 30.00 6.47 10.00 0.83 41.83
138.30 28.77 30.00 Nil 10.00 Nil 69.61

Pensioner Couple
Income (gross) Tax Rent Rent rebate Rates Rate rebate Disposable income
£ £ £ £ £ £ £
61.30 Nil 30.00 22.88 10.00 7.95 52.13
66.30 Nil 30.00 20.38 10.00 6.95 53.63
71.30 1.46 30.00 17.93 10.00 5.97 53.74
76.30 2.96 30.00 16.48 10.00 5.32 55.14
81.30 4.46 30.00 15.03 10.00 4.67 56.54
91.30 7.46 30.00 12.13 10.00 3.37 59.34
101.30 10.46 30.00 9.23 10.00 2.07 62.14
111.30 13.46 30.00 6.33 10.00 0.77 64.94
161.30 28.46 30.00 Nil 10.00 Nil 92.84

Mr. Major

[pursuant to his reply, 27 April 1987, c. 31–32]: The information requested is shown in the tables. The housing benefit components did not change between November 1985 and November 1986 because at the July 1986 uprating, the needs allowances were increased exactly in line with retirement pensions.

Table 3: 1986, Rent £15.00, Rates£7.00
November 1986
Single Pensioner
Income (gross) Tax Rent Rent rebate Rates Rate rebate Disposable income
£ £ £ £ £ £ £
38.70 Nil 15.00 14.13 7.00 6.25 37.08
43.70 Nil 15.00 11.63 7.00 5.25 38.58
48.70 1.10 15.00 9.13 7.00 4.25 38.98
53.70 2.55 15.00 7.62 7.00 3.58 40.35
58.70 4.00 15.00 6.17 7.00 2.93 41.80
68.70 6.90 15.00 3.27 7.00 1.63 44.70
78.70 9.80 15.00 Nil 7.00 Nil 46.90
88.70 12.70 15.00 Nil 7.00 Nil 54.00
138.70 27.20 15.00 Nil 7.00 Nil 89.50

Pensioner Couple
Income (gross) Tax Rent Rent rebate Rates Rate rebate Disposable income
£ £ £ £ £ £ £
61.95 Nil 15.00 13.88 7.00 6.15 59.98
66.95 Nil 15.00 11.38 7.00 5.15 61.48
71.95 0.48 15.00 8.93 7.00 4.17 62.57
76.95 1.93 15.00 7.48 7.00 3.52 64.02
81.95 3.38 15.00 6.03 7.00 2.87 65.47
91.95 6.28 15.00 3.13 7.00 1.57 68.37
101.95 9.18 15.00 Nil 7.00 Nil 70.77
111.95 12.08 15.00 Nil 7.00 Nil 77.87
161.95 26.58 15.00 Nil 7.00 Nil 113.37

Table 4: 1986, Rent £30.00, Rates £15.00
November 1986
Single Pensioner
Income (gross) Tax Rent Rent rebate Rates Rale rebate Disposable income
£ £ £ £ £ £ £
38.70 Nil 30.00 23.13 10.00 8.05 29.88
43.70 Nil 30.00 20.63 10.00 7.05 31.38
48.70 1.10 30.00 18.13 10.00 6.05 31.78
53.70 2.55 30.00 16.62 10.00 5.38 33.15
58.70 4.00 30.00 15.17 10.00 4.73 34.60
68.70 6.90 30.00 12.27 10.00 3.43 37.70
78.70 9.80 30.00 9.37 10.00 2.13 40.40
88.70 12.70 30.00 6.47 10.00 0.83 43.30
138.70 27.20 30.00 Nil 10.00 Nil 71.50

Pensioner Couple
Income (gross) Tax Rent Rent rebate Rates Rale rebate Disposable income
£ £ £ £ £ £ £
61.95 Nil 30.00 22.88 10.00 7.95 52.78
66.95 Nil 30.00 20.38 10.00 6.95 54.28
71.95 0.48 30.00 17.93 10.00 5.97 55.37
76.95 1.93 30.00 16.48 10.00 5.32 56.82
81.95 3.38 30.00 15.03 10.00 4.67 58.27
91.95 6.28 30.00 12.13 10.00 3.37 61.17
101.95 9.18 30.00 9.23 10.00 2.07 64.07
111.95 12.08 30.00 6.33 10.00 0.77 66.97
161.95 26.58 30.00 Nil 10.00 Nil 95.37

Notes:

1 The November 1985 retirement pensions and housing benefit needs allowances have been used for tables 1 and 2, and the July 1986 levels for tables 3 and 4.

2 The 1985–86 age allowances and tax rate have been used for tables 1 and 2, and the 1986–87 levels for tables 3 and 4.

3 Income is assumed to be unearned throughout.