§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the average weekly monetary gain for a pensioner couple in each income decile, and with average expenditure on domestic fuel for the respective decile, for 1998–99, accruing from(a) the reduction in VAT on domestic fuel from eight per cent. to five per cent. (b) the reduction in the uprating for pensions and other state benefits consequent on the reduction of VAT on fuel from eight per cent. to five per cent. and (c) the announcement on 25 November of extra help towards pensioner heating costs. [19271]
§ Dawn Primarolo[holding answer 9 December 1997]: The extra help announced by the Chancellor in his pre-budget statement amounts to £50 for pensioner households on income support, and £20 to other pensioner households. These winter fuel payments will be paid both this winter and next. Given the purpose of these payments, it makes little sense to break these figures down into weekly amounts.
477WFor the reduction in VAT, net of the effect on uprating of pensions the average weekly cash gain for married pensioner households, by income decile, is given in the table below:
VAT reduction from 8 per cent. to 5 per cent. net of effect on uprating of pensions As a percentage of net household income Bottom 0.35 0.20 2 0.25 0.15 3 0.25 0.10 4 0.25 0.10 5 0.25 0.10 6 0.25 0.05 7 0.30 0.10 8 0.40 0.10 9 0.40 0.05 Top 0.60 0.05 Average 0.30 0.10 The information is based on Family Expenditure Survey data, for married pensioner households. The cash figures in the table have been rounded to the nearest 5p, the percentages have been rounded to the nearest 0.05 per cent. Due to rounding the results for the VAT reduction and the effect on pensions may not sum to the figure in the total column.