HC Deb 02 December 1991 vol 200 cc51-2W
Sir Ian Gilmour

To ask the Secretary of State for Social Security if he will update to 1988 his reply to the right hon. Member for Chesham and Amersham,Official Report, 20 May 1991, column 389, showing the numbers of retirement pensioners with incomes other than state pensions within the given bands of income.

Miss Widdecombe

The information requested is in the table:

Numbers (thousands)
Married Single
Up to £5 130 650
£5-£10 100 350
£10-£15 140 370
£15-£20 160 430
£20-£30 340 950
£30-£40 200 400
£40-£50 200 230
£50-£60 120 150
£60-£70 90 120
£70-£80 100 130
£80-£90 80 110
£90-£100 60 70
£100-£110 70 60
£110-£130 120 120
£130-£150 90 60
£150-£200 190 100
£200 and over 330 130
Total 2,510 4,430

Note: The figures show respectively thousands of pensioner couples and single pensioners in receipt of gross incomes other than retirement pension, supplementary pension and income support. This definition conforms with that used in the answer provided to my right hon. Friend the Member for Chesham and Amersham (Sir I. Gilmour) on 20 May 1991 at columns 388–89. The income bands have been aggregated in some cases to provide a statistically adequate sample.

Source: 1988 family expenditure survey.

Mr. Nellist

To ask the Secretary of State for Social Security what would be the current value of the state retirement pension had its 1979 value been increased each year by either the percentage rise in prices or in average earnings whichever in each year was the higher; and what would be the current value of the pensioners' Christmas bonus had it been increased since its introduction by (a) the percentage rise in prices, (b) the percentage rise in average earnings or (c) the percentage rise in either prices of average earnings whichever, in each year, had been the higher.

Miss Widdecombe

[holding answer 18 November 1991]: The basic pension would now be worth £65.85 had it been increased since 1979 by the higher of earnings or prices. The extra cost to the national insurance fund of this increase would require the combined employer and employee National Insurance contributions to rise by £8.70 per week for a male employee on average earnings.

The Christmas bonus would now be worth £57.30 had it been increased since 1972 in line with prices, at an extra cost of £568 million; £77–40 had it been increased in line with average earnings, at an extra cost of £809 million; and £88.10 had it been increased in line with the higher of average earnings or prices, at an extra cost of £937 million. As the bonus is paid to all pensioners regardless of income, any increase in its present level would be a poorly targeted use of resources and would also require higher national insurance contributions.