HC Deb 29 July 1998 vol 317 cc325-7W
Mr. Flynn

To ask the Secretary of State for Social Security how many single pensioners and pensioner couples he expects to qualify for the guaranteed minimum income who would not qualify for income support if it were increased only in line with prices. [52411]

Mr. Denham

The information is in the table.

IS Pensioner Benefit Units
Thousand
Floaters-on from April 1999 increases
Year Singles Couples
1999–2000 55 10
2000–01 50 10
2001–02 50 10

Notes:

1. All estimates exclude cases in residential care and nursing homes as insufficient information is available on these cases to be able accurately to model the additional cases who may float-on under the increases

2. Estimates have been based upon latest Income Support forecasts, following the changes announced as part of the Comprehensive Spending Review, and information from the 1995–96 Family Resources Survey

3. Under Income Support rules, one partner in a couple need be aged over 60 years to be classed as a couple pensioner benefit unit

4. Estimates have been rounded to the nearest 5,000 cases

Mr. Flynn

To ask the Secretary of State for Social Security what is the estimated additional cost of the guaranteed minimum income compared with that of uprating income support for pensioners in line with prices, assuming no increase in take-up; and by how much this figure would be increased if full take-up were achieved. [52413]

Mr. Denham

The table illustrates the estimated additional expenditure effect of increasing the Income Support rates above the normal price uprating for;

  1. (a) existing cases and those who "float on" as a result of the increase and;
  2. (b) those pensioners who become entitled as a result of activity to increase take-up.

Estimated expenditure effects of increases to Income Support rates from April 1999
£ million, cash prices
Year Increases to IS rates based on current take-up rates Increases to IS rates based on 85 per cent, take-up expenditure
1999–2000 265 275
2000–01 270 305
2001–02 270 330

Notes:

1. All estimates exclude cases in residential care and nursing homes as insufficient information is available on these cases to be able to accurately model the additional cases who may float-on under the increases

2. Estimates have been based upon latest Income Support forecasts, following the changes announced as part of the Comprehensive Spending Review, and information from the 1995–96 Family Resources Survey

3. Estimates relate to the expenditure effects in Income Support only

4. Estimates have been rounded to the nearest £5 million

5. Take-up estimates are based on achieving 85 per cent. take-up expenditure by the end of year 3.

Mr. Flynn

To ask the Secretary of State for Social Security by how much the guaranteed minimum income will be higher for older pensioners. [52412]

Mr. Denham

The current rates of Income Support will be increased by £4.60 per week for single pensioners aged 75 to 79, and by £4.70 per week for pensioners aged 80 and over.

The full range of the increases is given in the table.

£
Age Current rate: single Rate from April 1999 Current rate: couple Rate from April 1999
60–74 70.45 75.00 109.35 116.60
75–79 72.70 77.30 112.55 119.85
80+1 77.55 82.25 117.90 125.30
1 The rate for pensioners aged 80+ also applies to pensioners aged 60 and over, who are disabled

Mr. Goggins

To ask the Secretary of State for Social Security if he will estimate the full year cost of disregarding the first £10 of income from(a) savings and (b) private pensions when calculating means-tested benefits for all pensioners. [52573]

Mr. Denham

No account is taken of actual income from savings. It is not possible to provide information on personal pensions as they cannot be identified separately from other types of annuity income in the Family Resources Survey. Such information as is available is in the table.

Estimated annual expenditure across the income related benefit system from disregarding the first £10 of income from occupational pensions
£ million
Benefit Cost 1998–99 prices
Income Support 70
Housing Benefit 95
Council Tax Benefit 45
Total 210

Note:

Costs have been rounded to the nearest £5 million

Source:

Costs in Income Support were obtained from the 1998–99 Income Support Simulation Model, based on the May 1996 Quarterly Statistical Inquiry, and those for Housing Benefit/Council Tax Benefit were calculated from the 1998–99 Policy Simulation Model, which is based on the 1995–96 Family Resources Survey