HC Deb 06 November 2000 vol 356 cc92-3W
Mr. Willetts

To ask the Secretary of State for Social Security how many(a) pensioners and (b) children in each of the past five years have lived in households with less than 60 per cent. of median income. [134558]

Mr. Bayley

The information is in the tables.

Number of pensioners living in households below 60 per cent. of contemporary median income
Million
Including self-employed Excluding self-employed
Year Before housing costs After housing costs Before housing costs After housing costs
1994–95 2.0 2.5 1.9 2.3
1995–96 2.1 2.4 2.0 2.3
1996–97 2.0 2.5 1.9 2.4
1997–98 2.1 2.6 2.0 2.5
1998–99 2.2 2.6 2.0 2.4

Number of children living in households below 60 per cent. of

contemporary median income

Million
Including self-employed Excluding self-employed
Year Before housing costs After housing costs Before housing costs After housing costs
1994–95 2.9 4.0 2.3 3.3
1995–96 2.7 4.0 2.2 3.4
1996–97 3.3 4.4 2.7 3.9
1997–98 3.2 4.3 2.7 3.8
1998–99 3.1 4.2 2.6 3.7

Notes:

1. All figures are estimates and are taken from the Households Below Average Income (HBAI) data set which is derived from the Family Resources Survey (FRS). The FRS does not include Northern Ireland, and 1998–99 is the latest year for which data are available.

2. The estimates are sample counts, which have been adjusted for non-response using multipurpose grossing factors that control for region, Council Tax band and a number of other demographic variables. Estimates are subject to both sampling error and to variability in non-response. All numbers are rounded to the nearest 100,000.

3. The income measure used is weekly net (disposable) equivalised household income (that is to say income that is adjusted to reflect the composition of the household). While the number of individuals below various income thresholds may be sensitive to the precise way in which incomes are equivalised, changes shown over time generally are not.

4. The estimates are presented on both a Before Housing Costs (BHC) and an After Housing Costs (AHC) basis in line with HBAI conventions. Figures are also provided including and excluding the self-employed, as research suggests that, for self-employed people, income as reported in surveys is often a poor indicator of living standards.

Source:

Family Resources Survey

We have pledged to halve the number of children living in poverty in 10 years and eradicate child poverty in 20 years and we have already made significant progress. Estimates of the impact of the last four budgets are that the tax and benefit measures announced will lift 1.2 million children above the 60 per cent. median threshold after housing costs.

Also, past changes in pensioner incomes reflect the fact that many pensioners have simply lost out on the opportunity for all people of working age to build a second pension. We are also determined to provide security for all of today's pensioners. The minimum income guarantee provides that security for pensioners with low incomes and our national take-up programme will encourage those entitled to claim.