§ Mr. ViggersTo ask the Secretary of State for Social Security what are(a) the total income of a single man aged 65 years who has no savings or resources, taking account of guaranteed minimum pension, housing benefit and council tax benefit, (b) the retirement pension payable to a single man aged 65 years who has savings above the means-testing limits, (c) the difference per annum between (a) and (b), and (d) the amount of money which would be required to purchase an annuity to fund (c). [81913]
§ Mr. TimmsThe amounts of Housing Benefit and Council Tax Benefit that a person receives depends on local factors as well as personal circumstances. This individual is assumed to have no pension above the basic168W pension and no savings and so is eligible for £75 Minimum Income Guarantee. This hypothetical individual with the average amount of Housing Benefit and the average amount of Council Tax Benefit received by those on Income Support aged 60 or over would receive £127 a week in Income Support, Housing Benefit and Council Tax Benefit.
Retirement Pension consists of two main components, the basic State pension and additional pension, also known as SERPS. This individual is assumed to be a recently retired man who has at least £16,000 capital and who receives no income from his capital. This hypothetical individual with the average basic State pension and the average gross SERPS would receive £108 a week.
The difference in income is £19 a week.
At March 1999 annuity rates, a lump sum of £14,000 would be required for a single 65 year old man to purchase an annuity that provides this level of weekly income. This is less than the £16,000 capital limit for income related benefits.
Note:
1. Weekly income figures are rounded to the nearest pound and the lump sum figure is rounded to the nearest thousand pounds.