§ Earl Russellasked Her Majesty's Government:
How many pensioners at present receive less than the full state pension because of incomplete contributions; what is the average shortfall per pensioner; and what is the total reduction in the budget for the state pension as a result. [HL540]
§ The Parliamentary Under-Secretary of State, Department of Social Security (Baroness Hollis of Heigham)At 31 March 1999 there were 3.4 million people receiving less than the full state pension because of incomplete contributions. This figure includes married women who are receiving a full rate Category B pension, which is 60 per cent of the basic pension, based on their spouses' contributions. The average weekly shortfall per pensioner is £25.79. These figures are reflected in estimates of benefit expenditure.
Notes:
1. All figures are for those pensioners resident in Great Britain only.
2. Figures include women who are receiving a full rate Category B pension either based on their own or their spouses' contributions. These include women who have paid no contributions themselves or a reduced rate contribution under the married woman's option. Figures also include pensioners on other categories of the basic state pension who are receiving less than the full Category A rate.
3. Statistics are derived from a 5 per cent sample of the Pensioners Strategy Computer System as at 31 March 1999.
4. Numbers of pensioners are rounded to the nearest 100,000.
5. Costs are provided by the Government Actuary's Department and are in 1999–2000 prices and benefit rates.