HC Deb 02 May 1989 vol 152 cc90-2W
Mr. McCrindle

To ask the Secretary of State for Social Security what information he has as to how many pensioners receive only the state retirement pension; and if he will make a statement.

Mr. Peter Lloyd

As at 30 September 1988, 2,168,320 pensioners in Great Britain were receiving only the basic state retirement pension, that is they were not in receipt of graduated pension or additional pension. However, these pensioners may also have been receiving other contributory and non-contributory benefits. In particular, a pensioner who has only the basic state pension and little or no other income or savings may be entitled to income support and housing benefit.

Mr. McCrindle

To ask the Secretary of State for Social Security if he will estimate the percentage of pensioners on incomes on or below 140 per cent. of income support level; and if he will make a statement.

Mr. Peter Lloyd

The low income families statistics, which show the number and characteristics of pensioners not receiving supplementary benefit but with incomes within 140 per cent. of the supplementary benefit scale rates have been discontinued. Alternative measures of net income before and after housing costs have been introduced. Figures on this alternative basis covering the years 1981, 1983 and 1985 can be found in "Households Below Average Income", copies of which are in the Library.

Mr. McCrindle

To ask the Secretary of State for Social Security (1) if he will estimate the percentage of pensioners in the lowest quintile of the national income distribution; and if he will make a statement;

(2) what assessment he has made of the causes of the reduction in the percentage of pensioners in the lowest quintile in recent years; and if he will make a statement;

(3) how many pensioners are in the highest quintile of the population; and if he will make a statement.

Mr. Peter Lloyd

In 1979, 38 per cent. of pensioner tax units (a pensioner tax unit is a single person of state pension age or over, or a couple where the man is of state pension age or over) were in the lowest fifth of the national income distribution. In 1986, the latest year for which information is available, this figure had fallen to 24 per cent. The factors contributing to this reduction include the 23 per cent. real terms increase in pensioners' average total net income between 1979 and 1986, and the fact that pensioners' incomes increased twice as fast as those of the population as a whole over the same period. In 1986, 6 per cent. of pensioners were in the highest fifth of the national income distribution.

Source: Family Expenditure Survey 1986

Mr. McCrindle

To ask the Secretary of State for Social Security what is his latest estimate of the numbers of pensioners in Britain; and if he will make a statement.

Mr. Peter Lloyd

As at 30 September 1988 there were approximately 9.4 million retirement pensioners resident in Great Britain.

Mr. McCrindle

To ask the Secretary of State for Social Security if he will estimate the number of pensioners receiving(a) income support and (b) housing benefit; and if he will make a statement.

Mr. Peter Lloyd

The latest available figure for income support is 1,671,000. This relates to cases where either the claimant or his partner is aged 60 or over. Information for housing benefit recipients is not yet available.

Mr. McCrindle

To ask the Secretary of State for Social Security how many pensioners lost entitlement to housing benefit following the introduction of the capital cut-off limit of £8,000; what was the estimated annual saving to the Exchequer as against the previous arrangements; and if he will make a statement.

Mr. Peter Lloyd

The housing benefit capital limit was introduced on 14 April 1988 at £6,000, at an estimated net saving of £80 million; it was increased to £8,000 on 13 May 1988. The increase cost an estimated £35 million and restored entitlement to housing benefit to around 100,000 of the 300,000 people—almost all pensioners—who had lost entitlement in April.

Mr. McCrindle

To ask the Secretary of State for Social Security (1) if he will estimate the percentage of total pensioners' income in 1988 represented by social security benefits; and if he will make a statement;

(2) if he will estimate the percentage of total pensioners' income in 1988 represented by occupational pensions; and if he will make a statement;

(3) if he will estimate the percentage of total pensioners' income in 1988 represented (a) by savings and (b) by investments; and if he will make a statement;

(4) if he will estimate the percentage of total pensioners' income in 1988 represented by earnings; and if he will make a statement.

Mr. Peter Lloyd

In 1986, the latest year for which information is available, 59 per cent. of pensioners' average gross income was derived from social security benefits, 20 per cent. from occupational pensions, 14 per cent. from savings and investments, and 7 per cent. from earnings.

Source: Family Expenditure Survey 1986.

Note: There is no generally agreed distinction between savings and investments.