HC Deb 08 November 1991 vol 198 cc314-5W
Mr. Meacher

To ask the Secretary of State for Social Security what percentage of current gross average earnings is represented, in the United Kingdom and in each European Community country, by the(a) basic pension, (b) earnings-related supplement, and (c) total state pension for (i) a single pensioner and (ii) a pensioner with a dependent spouse of pension age.

Mr. Jack

It is not possible to compare pension arrangements between EC member states in the manner requested by the hon. Member. Only four countries within the EC—the United Kingdom, Denmark, Netherlands and the Republic of Ireland—pay a flat-rate state pension. Other countries operate earnings-related schemes whereby each person's pension is directly related to his own earnings level during his working life and accordingly has a different and individual relationship to national average earnings.

Mr. Allen

To ask the Secretary of State for Social Security (1) if he will allow those state pensioners in receipt of small occupational pensions to relinquish those pensions so that they can claim income support and the passported benefits;

(2) what measures his Department is taking to ensure that those state pensioners who have a small occupational pension are not penalised by the benefit rules such that they are worse off than those without an occupational pension.

Miss Widdecombe

Many pensioners who have both a state retirement pension and an occupational pension are entitled to income support. They, like all income support recipients, automatically qualify for maximum housing benefit and community charge benefit which are the passported benefits for which this Department is responsible.

A pensioner whose occupational pension takes his total income above the level at which income support would be payable should still be better off than a person in similar circumstances who qualifies for income support. This is due to the effect of the tapers in housing benefit and community charge benefit which enable the pensioner to keep some of that extra income. The tapers are applied to any income above the applicable amount appropriate to a particular case and the resulting figure is offset against the maximum benefit payable. In housing benefit the taper is 65 per cent. and in community charge benefit it is 15 per cent.

It would not be permissible, however, for any claimant to give up an income in order to claim public money to which he or she is not properly entitled.