§ Baroness Greengrossasked Her Majesty's Government:
What percentage and number of (a) men and (b) women who are eligible for a state pension are entitled to receive the full basic state pension; and [HL2344]
What percentage and number of (a) male pensioners and (b) female pensioners receive a partial state pension; and whether the figures for those receiving a partial state pension can be broken down into the following bands of the full state pension: 75–99 per cent; 50–74 per cent, 25–49 per cent, 1–24 per cent; and [HL2345]
Based on their current assumptions on the likely level of the basic state pension, the guarantee credit and the savings credit at the time of implementation of the State Pension Credit Bill, how many people will be eligible for the savings credit but will be required to use a part of their savings to bring them up to the level of the full basic state pension prior to the balance of their savings being eligible for the savings credit; and [HL2346]
Based on their current assumptions on the likely level of the basic state pension, the guarantee credit and the savings credit at the time of implementation of the State Pension Credit Bill, what would be the cost to the Exchequer of not requiring individuals to use a part of their income to bring themselves up to the level of the full basic state pension prior to applying the savings credit to the balance of their income; and [HL2347]
14WABased on their current assumptions on the likely level of the basic state pension, the guarantee credit and the savings credit at the time of implementation of the State Pension Credit Bill, what would be the cost to the Exchequer of applying a proportion of the savings credit, equal to the proportion of the full state pension to which an individual is entitled, that portion of their income that is used to bring them up to the full state pension, prior to the balance of their income receiving the full savings credit; and [HL2348]
What assessment has been made of the impact of the introduction of the state pension credit for pensioners who do not receive a full basic state pension but are in receipt of a small second income from savings or a private pension. [HL2349]
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Hollis of Heigham): Such information as is available is in the tables.
Table 1: Men and Women Receiving Full Basic State Pension Number Percentage Men 3,440,000 92 per cent Women 5,260,000 83 per cent Source
5 per cent sample from the Pensions Strategy Computer System (PSCS) at March 2001 (Administrative Data).
Notes
1. Figures are rounded to the nearest 10,000 and nearest percentage point.
2. Figures are for Great Britain.
3. The table includes those in receipt of a Category A. AB, ABL, B, BL or D state pension.
You also asked for the percentage and number of pensioners receiving a partial state pension, or less than full basic state pension, and for this to be shown for various income bands. This information is shown below.
8.4 per cent of male pensioners and 17 per cent of female pensioners receive a partial basic state pension.
Table 2: Retirement Pensioners by gender. receiving less than a full basic state pension at 31 March 2001: Great Britain Thousands Thousands Percentage of Retirement Pension All Men Women All 1,413.6 317.5 1,096.1 Under 25 per cent 7.3 0.6 5.7 25 per cent to 49 per cent 331.8 24.0 307.7 50 per cent to 74 per cent 462.1 71.8 390.3 75 per cent to 99 per cent 612.4 221.1 391.3 Source:
5 per cent sample from the Pensions Strategy Computer System (PSCS) at March 2001 (Administrative Data).
Notes
1. The figures are rounded to the nearest hundred.
2. Totals may not sum due to rounding.
3. Figures are based on pensioner's entitlement recorded on PSCS at the date of extraction.
We are unable to estimate the number of people with less than full basic state pension who will potentially be entitled to the pension credit. However, from survey data we estimate that around half a million pensioners 15WA will have total income of less than £77 and that bringing their income levels up to £77 would cost around £450 million a year in gross terms. Data limitations makes further analysis of this group speculative.
The Government believe that the full basic state pension is the foundation of state pension entitlement for today's pensioners and have no plans to link the savings threshold of the pension credit to an individual's basic state pension where this is based on a deficient contribution record.