§ Mr. WillettsTo ask the Secretary of State for Work and Pensions what the marginal benefit withdrawal rate will be from October 2003 for a pensioner on the pension credit who also receives(a) council tax benefit, (b) housing benefit and (c) council tax benefit and housing benefit. [24234]
§ Mr. McCartneyThe information requested is shown in the following tables. The tables show the marginal deduction rates applied to people under minimum income guarantee or pension credit regimes who also receive any combination of housing and council tax benefits.
Pension credit recipients with income above the guarantee credit who are also entitled to housing and council tax benefits will experience higher withdrawal rates than under the minimum income guarantee. However, these people will see gains from the introduction of the savings credit, the fairer treatment of capital and the extension of the applicable amounts in housing and council tax benefit due to our proposals for 421W pension credit. This means that a single pensioner over 65 with marginal deduction rates of 91 per cent. will gain at least £ 11 a week (couples will gain at least £15.81). It
Table 1: Marginal deduction rates facing a single pensioner aged 65 or over, and couples where one member is over 651 Illustrative weekly income (£) Percentage Marginal deduction rates For singles For couples Council tax benefit(a) Housing benefit(b) Council tax benefit and housing benefit (c) Minimum income guarantee 0–100 0–154 100 100 100 100+ 154+ 20 65 85 Pension credit 0–77 0–123 100 100 100 77–100 123–154 40 40 40 100–135 154–200 52 79 91 135+ 200+ 20 65 85 1 Excludes income tax
Table 2: Marginal deduction rates facing a single pensioner aged 60–64, and couples where both are under 65 but one member is aged 60–641 Illustrative weekly income (£) Percentage Marginal deduction rates For singles For couples Council tax benefit(a) Housing benefit(b) Council tax benefit and housing benefit(c) Minimum income guarantee 0–100 0–154 100 100 100 100+ 154+ 20 65 85 Pension credit 0–77 0–123 100 100 100 77–100 123–154 100 100 100 100–135 154–200 20 65 85 135+ 200+ 20 65 85 1 Excludes income tax
Table 3: Gains for single pensioners over 65 due to the introduction of pension credit £ Illustrative weekly income for singles Pension credit Council tax benefit (a) Housing benefit (b) Council tax benefit and housing benefit (c) 0–77 0.00 0.00 0.00 0.00 77–100 0.00–13.80 0.00–13.80 0.00–13.80 0.00–13.80 100–135 0–13.80 2.76–13.80 2.97–13.80 11.73–13.80 135+ 0.00 2.76 8.97 11.73
Table 4: Gains for pensioner couples where one member of the couple is over 65 due to the introduction of pension credit £ Illustrative weekly income for couples Pension credit Council tax benefit (a) Housing benefit (b) Council tax benefit and housing benefit (c) 0–123 0.00 0.00 0.00 0.00 123–154 0.00–18.60 0.00–18.60 0.00–18.60 0.00–18.60 154–200 0–18.60 3.72–18.60 12.09–18.60 15.81–18.60 200+ 0.00 3.72 12.09 15.81 Notes for all tables:
1. It is assumed that a pensioner with HB and/or CTB entitlement was entitled to these benefits before the introduction of pension credit.
2. Although single pensioners with income under £77 and pensioner couples with income under £123 face 100 per cent. marginal deduction rates their final income will be raised to the amount of the guarantee credit as a result of the introduction of pension credit.
3. Tables 3 and 4 show gains due only to the savings credit and the extension of the applicable amounts in housing and council tax benefits by the maximum savings credit. Some pensioners will gain more because of the changes to the treatment of capital and the more generous income assessment.
422Walso means that almost 1.9 million pensioner households will get more help, or get help for the first time, with their rent or council tax.