§ Mr. FlynnTo ask the Secretary of State for Social Security what is the estimated number of(a) single pensioners and (b) pensioner couples receiving income support in each year for which estimates are available from 1999–2000 assuming that income support is uprated in line with (i) prices and (ii) earnings, respectively. [50862]
§ Mr. DenhamThe increases to Income Support for pensioners from April 1999, announced as part of the Comprehensive Spending Review (CSR), are more generous than if current rates were to be uprated in line with either estimated prices or earnings.
The table therefore estimates for 2000–01 and 2001–02 the numbers of pensioner benefit units on Income Support (IS) if the higher rates announced for 1999–2000 in the CSR were uprated under (i) prices and (ii) average earnings uprating.
IS pensioner benefit units 2000–01 2001–02 (i) Uprating by prices (a) singles 1,385,000 1,475,000 (b) couples 305,000 330,000 (ii) Uprating by average earnings (a) singles 1,435,000 1,595,000 (b) couples 325,000 385,000 Notes:
1. All estimates exclude cases in residential care and nursing homes as insufficient information is available on these cases to be able to model the additional cases who may float-on under (ii)
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. Average earnings assumptions are consistent with the latest data on GB earnings growth
4. Under Income Support rules, only one partner in a couple need be aged over 60 years to be classed as a couple pensioner benefit unit
5. Estimates have been rounded to the nearest 5,000 cases
741W
§ Mr. WebbTo ask the Secretary of State for Social Security, pursuant to his answer of 27 July 1998,Official Report, column 70, for what reason the poverty rate for single female pensioners aged 80 years or above is significantly lower than that for pensioners aged 75 to 79 years when income is measured after housing costs. [54221]
§ Mr. DenhamOn the after-housing costs measure, 38 per cent. of single female pensioners aged 75 to 79, and 28 per cent. of single female pensioners aged 80 or over, have incomes below half the national average
Roughly one third of the difference in the proportion of people with below half average income between the two age groups can be explained by differences in receipt of Attendance Allowance. Attendance Allowance is intended to help to meet the additional costs of disability, the risk of which increases with age. The higher income of recipients does not necessarily imply that they have higher relative living standards than comparable non-recipients as they may have additional disability related costs. If Attendance Allowance is excluded from the definition of income, 38 per cent. of single female pensioners aged 75 to 79 and 31 per cent. of single female pensioners aged 80 or over have incomes below half the national average after housing costs. Other factors may also be important but it has not been possible to isolate them.
A substantial proportion of pensioners have incomes which are close to half average income. Therefore, small variations in income between different groups of low income pensioners can lead to large differences in the proportion designated as having low incomes. For example, if 60 per cent. of average income is used rather than half average income, 56 per cent. of single female pensioners aged 75 to 79, and 52 per cent. of single female pensioners aged 80 or over, have incomes below the threshold on the after housing costs measure.
All figures come from the Department's Households Below Average Income (HBAI) dataset based on the Family Resources Survey (FRS) for the financial year 1995–6.
§ Mr. WebbTo ask the Secretary of State for Social Security (1) if he will list the categories of pensioners who will not have a guaranteed income after the introduction of his proposed pensioner income guarantee; and if he will identify the number of pensioners in each category; [54098]
(2) how many pensioners have more than £8,000 in savings and also a lower income than the income support rates applicable from April (a) 1999 and (b) 1998; [54173]
(3) how many pensioners have savings of between £3,000 and £8,000 and a lower income, excluding income from savings, than the income support rates applicable from April (a) 1999 and (b) 1998. [54174]
§ Mr. DenhamI will write to the hon. Member.