HC Deb 30 November 2000 vol 357 cc852-3W
Mr. Flynn

To ask the Secretary of State for Social Security how many pensioner households and individual pensioners are(a) entitled to and (b) receiving the minimum income guarantee; to what levels these numbers are expected to increase in (i) 2001–02, (ii) 2002–03 and (iii) 2003–04; and how many, in addition to these, he expects to benefit from the pension credit in 2003–04. [141160]

Mr. Rooker

Currently around two million pensioners and pensioner couples benefit from the Minimum Income Guarantee. As a result of the measures outlined in the pre-Budget report, over two million pensioners will benefit in 2001–02, this will increase to 2.2 million in 2002–03.

From 2003 the Pension Credit will be introduced. We estimate that half of all pensioner households, comprising 5.5 million pensioners, will benefit from the Pension Credit.

Notes:

  1. 1. The numbers currently receiving the Minimum Income Guarantee are based on administrative data on current claims to the Minimum Income Guarantee, from the Quarterly Statistical Enquiry for August 2000. This includes RCNH and RA cases.
  2. 2. We are unable to give forecasts on future MIG entitlement.
  3. 3. The Pension Credit is made up of the guaranteed income top-up and the savings credit.
  4. 4. All figures have been rounded to the nearest 100,000 cases.
  5. 5. Pension Credit figures have been calculated using the Policy Simulation Model for Income Related Benefits. This models the benefits system and is based on data from the Family Resources Survey (FRS) for 1997–98. The FRS survey does not contain any information on RCNH or RA cases.
  6. 6. The Pension Credit is a new benefit and therefore we have provided estimates of entitlement.
  7. 7. The estimates are done on a benefit unit rather than a household basis. A benefit unit is a single pensioner or a pensioner couple. It is possible that more than pensioner benefit unit could live in the same household but in general the benefit unit is a reasonable approximation for a household for pensioners.

Mr. Willetts

To ask the Secretary of State for Social Security, pursuant to his answer to the hon. Member for Knowsley, South (Mr. O'Hara) of 23 March 2000,Official Report, column 661W, if he will estimate the (a) gross and (b) net cost of raising the minimum income guarantee (i) to £92.15 a week for single pensioners and £140.55 a week for married couples in 2001, (ii) to the expected level for 2002 and (iii) to £100 a week for single pensioners and £154 a week for married couples by 2003; and if he will estimate how many more people will be eligible for the main income-related benefits at each of these levels. [139253]

Mr. Rooker

The increases to the Minimum Income Guarantee (MIG) rates will benefit nearly two million pensioners. From April 2001 the new MIG rates will be £92.15 for all single pensioners-a real terms increase of £12.45 a week. The new MIG for couples will be £140.55 a week—a real terms increase of £16.65 for the poorest couples.

The expected cost of this for income-related benefits over the next three years will be around £420 million annually and is included in the forecasts of expenditure. The number of additional pensioners that will be eligible for the main income-related benefits as a result of the new MIG rates will be around 300,000 a year.