HC Deb 16 March 1992 vol 205 cc884-7W
Mr. Meacher

To ask the Secretary of State for Social Security if will update the figures provided for the hon. Member for Jarrow (Mr. Dixon) on 7 February 1985,Official Report, columns 685–86, on the level of state old age pensions as a percentage of current gross average earnings.

Mr. Jack

There are no meaningful, updated comparable statistics available on average earnings in the member states of the European Community, and I refer the hon. Member to my reply to him on 14 January at column552.

Mr. Meacher

To ask the Secretary of State for Social Security if he will update his answers to the hon. Member for Brighton, Kemptown (Mr. Bowden) of 27 March 1990,Official Report, column 161–62, using the 1989 family expenditure survey on pensioner incomes.

Miss Widdecombe

The information requested for 1989 is not yet available. In 1988, 16 per cent. of pensioner units received all their income from state benefits compared with 23 per cent. in 1979. The original tables have been updated(a) to include details of the information held using the 1988 family expenditure survey and (b) with medians rather than means used to calculate the average incomes in each quintile and decile. The updated tables are as follows:

Table 1: Real percentage changes in pensioners' net income by quintile.
Quintile Lowest Q2 Q3 Q4 Highest All
1979–80 4 2 2 2 0 2
1980–81 5 6 6 4 3 5
1981–82 3 3 2 1 -3 -1

Quintile Lowest Q2 Q3 Q4 Highest All
1982–83 5 6 7 9 12 11
1983–84 2 1 -2 -2 -1 -1
1984–85 -1 0 1 0 4 2
1985–86 2 2 3 6 8 5
1986–87 -2 1 2 4 4 7
1987–88 -3 0 1 3 6 2
Overall 14 24 24 30 37 34

Table 2: Cash changes in real equivalised income at each decile group of pensioner tax units. Change since previous year in £ per week in 1988 prices. Median values used for deciles, means for total values.
1979 to 1980 1980 to 1981 1981 to 1982 1982 to 1983 1983 to 1984 1984 to 1985
Lowest Q1 1.10 4.10 -0.40 4.40 0.90 -0.60
Q2 0.50 4.80 0.90 4.50 1.10 -1.10
Q3 1.00 5.30 1.00 5.10 1.50 -1.10
Q4 0.80 5.00 1.70 5.80 0.80 -0.50
Q5 0.90 4.90 2.00 6.30 0.40 0.60
Q6 0.90 5.00 2.20 6.80 0.50 -0.20
Q7 0.80 5.30 1.80 7.80 0.70 -0.40
Q8 -1.00 7.30 0.80 10.80 -1.00 2.50
Q9 -0.90 10.20 -3.00 16.10 -4.50 7.00
Q10 12.00 4.40 -10.40 29.60 -3.60 11.90
Total 1.40 6.60 -1.40 11.60 0.10 0.30
Change since 1979 1.40 8.00 6.60 18.20 18.30 18.60

1985 to 1986 1986 to 1987 1987 to 1988
Lowest Q1 1.90 -1.90 -0.50
Q2 2.20 0.00 -1.50
Q3 2.50 0.60 -1.60
Q4 3.40 0.80 -1.00
Q5 2.80 2.10 -1.00
Q6 3-40 3.10 -0.30
Q7 3.70 4.70 1.40
Q8 6.50 4.70 5.70
Q9 7.00 6.10 13.00
Q10 15.30 22.90 20.10
Total 6.40 6.80 1.40
Change since 1979 25.00 31.80 33.10

Table 2: Percentage changes in real equivalised income of each decile group of pensioner tax units. Percentage change since previous year. Median values used for deciles, means for total values.
1979 to 1980 1980 to 1981 1981 to 1982 1982 to 1983 1983 to 1984 1984 to 1985
Lowest Q1 2 6 -1 6 1 -1
Q2 1 7 1 6 1 -1
Q3 1 7 1 6 2 -1
Q4 1 6 2 6 1 -1
Q5 1 6 2 7 0 1
Q6 1 5 2 7 0 0
Q7 1 5 2 7 1 -1
Q8 -1 6 1 9 -1 2
Q9 -1 7 -2 11 -3 4
Q10 6 2 -5 14 -2 5
Total 1 6 -1 10 0 0
Change since 1979 1 7 6 17 117 17

1985 to 1986 1986 to 1987 1987 to 1988
Lowest Q1 3 -3 -1
Q2 3 0 -2
Q3 3 1 -2
Q4 4 1 -1
Q5 3 2 -1
Q6 3 3 0
Q7 3 4 1
Q8 5 3 4
Q9 4 4 7
Q10 6 9 7
Total 5 5 1
Change since 1979 23 30 31

Mr. Meacher

To ask the Secretary of State for Social Security how many additional pensioners will be brought into means testing by becoming eligible for income support as a result of the proposed addition to the income support pensioner premium.

Miss Widdecombe

It is estimated that up to half a million pensioners on low incomes will become newly entitled to claim income-related benefits from October. Around three quarters of these will qualify for income support, and the remainder for housing benefit and or community charge benefit.

Mr. Meacher

To ask the Secretary of State for Social Security what proportion of the real-terms increase in benefit expenditure on the elderly is attributable to the commencement and growth of spending on additional pensions with contributory benefit between 1978–79 and the latest available date.

Miss Widdecombe

Benefit expenditure on the elderly rose by 32.6 per cent, in real terms between 1978–79 and 1991–92. Additional pensions account for4.4 percent, real terms growth between those years, and all other benefits account for 28.2 per cent, real terms growth.

Mr. Meacher

To ask the Secretary of State for Social Security if he will update his answer to the hon. Member for Brighton, Kemptown (Mr. Bowden) of 3 July 1990,Official Report, columns 513–16 concerning the income of retired households, using the 1989 family expenditure survey.

Miss Widdecombe

I will write to the hon. Member.

Mr. Meacher

To ask the Secretary of State for Social Security if he will update his answer to the right hon. Member for Chesham and Amersham (Sir I. Gilmour) of 2 December 1991,Official Report, column 51, on pensioner incomes, using the information in the 1989 family expenditure survey.

Miss Widdecombe

The information requested is not yet available.

Mr. Meacher

To ask the Secretary of State for Social Security what proportion and number of pensioners will benefit from the addition to the income support pensioner premium.

Miss Widdecombe

It is estimated that some 5 million people aged over 60 will stand to gain from the increases announced by my right hon. Friend the Chancellor of the Exchequer on 10 March. About half these will gain from income support and about half from housing benefit and community charge benefit. Nearly half of all those over pension age will be entitled to extra benefit as a result of the increase.

Mr. Meacher

To ask the Secretary of State for Social Security if he will update his answer to the hon. Member for Brighton, Kemptown (Mr. Bowden) of 18 October 1991,Official Report, columns 273–74, regarding pensioners' living standards, to take account of the 1989 family expenditure survey results.

Miss Widdecombe

The information requested is not yet available.