§ Dr. KumarTo ask the Secretary of State for Work and Pensions (1) what will be the average gain per person for pensioners benefiting from the new pension credit; [48579]
(2) what advice is available to pensioners about the pension credit and how it can be accessed; [48581]
(3) if he will make a statement on the benefits of the new pensioner credit for people in Middlesbrough, South and East Cleveland; [48582]
(4) what impact will the new pension credit have on pensioners receiving housing and council tax benefits; [48583]
(5) how the savings credit element of the new pension credit will operate. [48584]
§ Mr. McCartneyI refer the hon. Member to the booklet, "The Pension Credit: the Government's proposals" which sets out how pension credit will work. A copy is available in the Library.
Subject to successful passage of the State Pension Credit Bill, pension credit will be introduced in October 2003. About 4.1 million pensioner households (over 5 million pensioners) will be eligible. On average they stand to gain around £400 a year.
Pension credit will ensure a guaranteed minimum income for those aged 60 and over so they need not live on less than £100 a week (£154 a week for pensioner couples). It will also ensure that pensioners no longer lose a pound in their benefit for every pound of pensions or other savings they have built up. From age 65 pension credit will give pensioners a cash addition of 60p for every £1 of income they have above the level of basic state pension up to a maximum of £13.80 week (£18.60 a week for couples). Pensioners with incomes up to £135 a week (£200 a week for couples) will benefit.
The housing benefit and council tax benefit schemes will be modified at a cost of £450 million a year to ensure that people who gain from pension credit do not lose those gains because of knock-on effects. As a consequence, almost 1.9 million pensioner households will be entitled to more help, or entitled to help for the first time, with their rent or council tax from October 2003.