HC Deb 19 January 1995 vol 252 cc623-5W
Mr. Bowden

To ask the Secretary of State for Social Security what number and proportion of all pensioners had no income from any source other than from state benefits for each year since 1990.

Mr. Arbuthnot

The information is in the table.

Proportion of pensioners with net income below half the contemporary average for the whole population
1979 1981 1987 1988–89 1990–91 1991–92
Single pensioners BHC (16) (9) (23) (31) (34) (29)
AHC (12) (8) (22) (42) (44) (40)
Pensioner couples BHC (16) (11) (20) 32 33 29
AHC (21) (16) 26 33 31 28

Notes:

1. Analysis is based on equivalised household income from the households below average income series. Estimates in brackets () are particularly sensitive to the choice of equivalence scale used. The results for single pensioners, for any one period of time, are highly sensitive to the assumptions employed in adjusting income for household size. For example, the BHC figure for single pensioners in 1979 of 16 per cent. could, on alternative assumptions, be anywhere between 3 per cent. and 53 per cent. The picture of changes over time is not so sensitive to the choice of assumptions. For more information on this see appendix 4 of "Households Below Average Income: a statistical analysis 1979–1991/92", a copy of which is in the Library.

2. BHC means before housing costs; AHC means after housing costs.

3. 1988–89, 1990–91, 1991–92 refers to data from the combined calendar years eg. 1988–89 means 1988 and 1989 combined.

Mr. Bowden

To ask the Secretary of State for Social Security how much the state pension for(a) single pensioners and (b) pensioner couples would have been in April 1995 had the pension been uprated in line with the higher of the retail price index or earnings since 1980.

Mr. Arbuthnot

It is estimated that the weekly rate of category A basic retirement pension would be £79.45 from April 1995 and the combined rate of category A and category B basic retirement pension payable to a couple would be £127.15 if the rates had been increased in line with the higher of earnings or prices since 1980.1 Expenditure on retirement pension would, as a result, be increased by an estimated £9.7 billion in the 1995–96 financial year.2

All pensioner units with no income from any source other than State benefits
Year Number million Proportion per cent
1990 1.1 16
1990–91 1 15
1992 1.1 15

Notes:

1. Estimates taken from the family expenditure surveys 1990, 1990–91 and 1992.

2. Figures for 1990 and 1991 were combined due to sample size problems.

Mr. Bowden

To ask the Secretary of State for Social Security what percentage of pensioner households has been dependent on state benefits for at least 50 per cent of their income for each year since 1990.

Mr. Arbuthnot

The percentage of pensioner units dependant on state benefits for at least 50 per cent of their income was 71 per cent in 1990 70 per cent in 1990–91 and 70 per cent in 1992.

Note:

1.Estimates taken from the family expernditure surveys 1990,1990–and 1992.

2.Figures for 1990 and 1991 were combined due to sample size problems.

3.Pensioner units are defined as single people over state pension age and couples in which the husband is over state pension age.

Mr.Bowden

To ask the secretary of state for social security what proportion of(a) singal pensioners and (b) pensioner couples had income below one half of average household income in each year since 1979.

Mr. Arbuthnot

Consistent estimates are available for the years shown in the table.

Notes:

1 Estimates provided by Department of Social Security, analytical services division—in each step of the calculation the benefits have been rounded to the nearest 5p;

the retail price index (all items) as published by the Central Statistical Office has been used for prices uprating;

earnings upratings have been calculated on the basis of the Employment Department's average earnings index (whole economy unadjusted) as amalgamated in the abstract of statistics published by the Department of Social Security, analytical services division.

2Estimate provided by the Government Actuary's department based on benefit rates calculated as per note 1.

Mr. Bowden

To ask the Secretary of State for Social Security what percentage of pensioner households has been dependent on state benefits for at least 75 per cent. of their income for each year since 1990.

Mr. Arbuthnot

The percentage of pensioner units dependant on state benefits for at least 75 per cent. of their income was 50 per cent. in each of the years 1990, 1990–91 and 1992.

Notes:

1. Estimates taken from the family expenditure surveys 1990,1990–1 and 1992.

2. Figures for 1990 and 1991 were combined due to sample size problems.

3. Pensioner units are defined as single people over state pension age and couples in which the husband is over state pension age.

Mr. Bowden

To ask the Secretary of State for Social Security how many and what proportion of all pensioners, single pensioners and pensioner couples have total incomes of(a) £1, (b) £2, (c) £3, (d) £4 and (e) £5 above income support levels.

Mr. Arbuthnot

The information is in the tables.

Table 1: The number of pensioner benefit units with incomes in ranges up to £5 above income support (IS) threshold
000s
Range Single pensioners Pensioner couples All pensioners
£0—£1 40 20 55
£1—£2 50 30 85
£2—£3 65 25 90
£3—£4 55 25 80
£4—£5 45 25 75

Table 2: Proportion of pension ranges up to £5 above income support (IS) thresholds
Percentage
Range Proportion of all single pensioners Proportion of all pensioner couples Proportion of all pensioners
£0—£1 1 1 1
£1—£2 1 1 1
£2—£3 1 1 1
£3—£4 1 1 1
£4—£5 1 1 1

Notes:

1. Caseloads figures have been rounded to the nearest 5,000, and the percentages have been rounded to the nearest percentage point.

2. The figures may not sum due to rounding.

3. A pensioner benefit unit is based on the pensions definition of a pensioner which is:

  1. (i) Single pensioner—a single male aged 65 or over or a single female aged 60 or over
  2. (ii) Pensioner couple—a couple where the husband is over state pension age.

4. Estimates are modelled results using data drawn from the 1990, 1991,1992 family expenditure survey, uprated to 1994–95 prices and benefit levels.

5. The definitions of income used in the tables is income taken into account for IS purposes and excludes certain types of income, such as, attendance allowance, housing benefit and the portion of war pensions covered by IS disregards.

Forward to