HC Deb 14 November 1996 vol 285 cc326-7W
Mr. Madden

To ask the Secretary of State for Social Security how many people, aged 80 years or above, are currently in receipt of an additional pension of 25p per week; how many of those people are currently in receipt of income support; how many of those people have their additional pension deducted in full from their income support; and if he will make a statement. [4137]

Mr. Roger Evans

It is estimated that 2,299,000 persons were eligible for the age addition as at September 1995. As at November 1995, 746,000 also received income support, either as the claimant or a partner, accounting for 700,000 benefit units. It is assumed that all of these persons will have the additional amount deducted in full from their income support.

Notes: 1. Numbers have been rounded to the nearest thousand. 2. Benefit units may be a single person or a couple. Either the claimant, their partner, or both claimant and partner may be in receipt to the age addition. 3. The data given assume that any person aged 80 or over receives the additional 25p per week, and that this amount is deducted from the person's income support in all cases. 4. Data refer to persons entitled to the additional amount. No data are available regarding numbers actually receiving the age addition. 5. Numbers include persons in residential care and nursing homes.

Source:

  1. 1. "Income Support Quarterly Statistical Enquiry November 1995" (5 per cent. sample)
  2. 2. "Retirement Pension Biannual Enquiry" correct at 30 September 1995.

Mr. Madden

To ask the Secretary of State for Social Security if he will make it his policy that the additional pension paid to those of 80 years and above be disregarded in full payment of income support. [4139]

Mr. Evans

No, we have no plans to introduce a disregard of the 25p age addition in the calculation of income support. Income support has a three-tier structure to reflect the increasing costs of older income support claimants. The pensioner premium is awarded automatically when a claimant reaches age 60, this is replaced by the enhanced pensioner premium at age 75 and the higher pensioner premium at age 80.

Mr. Madden

To ask the Secretary of State for Social Security if he will estimate the net cost of increasing the additional pension paid to those aged 80 years or above by the rate of inflation since the additional pension was introduced; what would be the net cost of increasing the additional pension by that figure (a) by inflation plus £5 per week and (b) by inflation plus £10 per week; and if he will make a statement. [4154]

Mr. Heald

The net cost of increasing the 25p age addition in retirement pension by the rate of inflation since 1971 would be £100 million in 1996–97. The age addition itself would be £1.65 per week.

The net cost of increasing the age addition in 1996–97 by inflation since 1971 and an extra £5 a week would be £460 million.

The net cost of increasing the age addition in 1996–97 by inflation since 1971 and an extra £10 a week would be £850 million.

The Government are committed to focusing help on the most needy pensioners. We have increased the higher pensioner premium in the income support scheme, for the over-80s, by more than 40 per cent. since 1988. This premium is currently £25.15 for single pensioners and £35.95 for couples. Raising this premium is a better way of focusing help on pensioners with low incomes than increasing the 25p age addition for all pensioners, regardless of their individual needs.

Sources:

  1. 1. Estimates of the gross costs of contributory retirement pensions were provided by the Government actuary's department.
  2. 2. Estimates of the gross costs of non-contributory retirement pensions were based on the 1996 departmental report.
  3. 3. Estimates of net costs were calculated using the policy simulation model 1996–97, which is based upon data from the family expenditure surveys 1991, 1992 and 1993: uprated to 1996–97 prices, benefit rates and caseloads, consistent with the 1996 departmental report.