HC Deb 17 May 2004 vol 421 cc740-2W
Mr. Edward Davey

To ask the Chancellor of the Exchequer what the average council tax was as a percentage of gross income for(a) pensioner and (b) non-pensioner households in all quintile groups in each financial year since 1997–98. [172877]

Ruth Kelly

The information requested falls within the responsibility of the National Statistician, who has been asked to reply.

Letter from Colin Mowl to Mr. Edward Davey, dated 17 May 2004: The National Statistician has been asked to reply to your recent question asking what the average council tax was as a percentage of gross income for (a) pensioner and (b) non-pensioner households in all quintile groups in each financial year since 1997–98.1 am replying in his absence. (172877) Estimates have been produced from the Office for National Statistics' analysis "The effects of taxes and benefits on household income" published on the National Statistics website on 6 May 2004 at http://www.statistics.gov.uk/taxesbenefits. The analysis includes measures of income inequality for the United Kingdom as a whole based on data from the Expenditure and Food Survey. The current analysis presents data for the category 'Council tax and Northern Ireland rates', as opposed to the category 'Local taxes' used in previous analyses. This is because, from this year, charges made by water authorities for water, environmental and sewerage services have been excluded. This treatment conforms to the National Accounts classification and definition of taxes where water rates and related charges are considered a charge for services rather than a tax. They have therefore been excluded from the calculation of disposable income. This reply is based on the new methodology. Pensioner households have been defined as those where the Household Reference Person is retired or unoccupied and aged 65 or more and male, or 60 years of age or more and female, and economically inactive. All other households are defined as non-pensioner households. The Household Reference Person is identified during the interview and is defined as the member of the household who:

  1. a. owns the household accommodation, or
  2. b. is legally responsible for the rent of the accommodation, or
  3. c. has the household accommodation as an emolument or perquisite, or
  4. d. has the household accommodation by virtue of some relationship to the owner who is not a member of the household.
If there are joint householders, the Household Reference Person will be the householder with the highest income. If the income is the same, then the eldest householder is taken. The following table shows the estimated gross and net council tax for pensioner households, non-pensioner households and all households in Great Britain for each income quintile where households are ranked by equivalised disposable income. The net council tax figures are gross council tax less benefits and discounts. The table also shows the equivalised disposable income quintile point boundaries, which have been calculated separately for each group of households.

Council tax as a percentage of gross income for pensioner1 and non-pensioner households
Quintile groups of all households ranked by equivalised disposable income
Great Britain2 Households Bottom 2nd 3rd 4th Top All households
Quintile points3 (equivalised disposable income, per year)
1997–98 Pensioner 7,701 9,503 11,707 15,393
Non-pensioner 9,177 13,623 18,449 25,508
All households 8,564 11,936 16,442 23,588
1998–99 Pensioner 8,031 9,765 12,298 16,742
Non-Pensioner 9,509 14,328 19,400 26,804
All households 8,832 12,582 17,281 24,384
1999–00 Pensioner 8,475 10,316 13,008 17,213
Non-Pensioner 9,909 15,215 20,401 28,596
All households 9,193 13,221 18,324 26,295
2000–01 Pensioner 8,492 10,621 13,259 17,951
Non-Pensioner 10,807 15,832 21,349 29,712
All households 9,821 13,893 19,134 27,296
2001–02 Pensioner 9,459 11,742 14,244 18,703
Non-Pensioner 11,647 17,133 22,784 31,396
All households 10,647 14,943 20,231 28,840
2002–03 Pensioner 10,096 12,524 15,285 20,203
Non-Pensioner 11,910 17,591 23,526 32,707
All households 11,242 15,541 20,977 29,745
Gross council tax as a percentage of gross income
1997–98 Pensioner 8.5 6.4 5.2 3.9 2.8 4.4
Non-Pensioner 5.4 3.1 2.3 1.8 1.3 2.1
All households 6.3 4.1 2.8 2.1 1.4 2.4
1998–99 Pensioner 8.8 6.5 5.4 4.2 2.8 4.5
Non-Pensioner 5.5 3.2 2.4 1.9 1.3 2.1
All households 6.5 4.3 2.9 2.2 1.4 2.4
1999–00 Pensioner 9.9 7.2 5.6 4,3 2.9 4.8
Non-Pensioner 6.2 3.4 2.5 2.0 1.3 2.2
All households 7.3 4.5 3.0 2.3 1.4 2.6
2000–01 Pensioner 10.4 7.1 5.6 4.6 2.9 4.9
Non-Pensioner 5.6 3.2 2.5 2.0 1.4 2.2
All households 7.0 4.3 2.9 2.2 1.5 2.6
2001–02 Pensioner 9.8 7.0 5.9 4.6 3.0 5.0
Non-Pensioner 6.0 3.3 2.5 2.0 1.3 2.2
All households 7.2 4.4 3.1 2.3 1.4 2.6
2002–03 Pensioner 9.8 7.0 5.7 4.6 3.1 5.0
Non-Pensioner 6.0 3.5 2.7 2.1 1.4 2.4
All households 7.1 4.6 3.2 2.4 1.6 2.7
Net council tax4 as a percentage of gross income
1997–98 Pensioner 5.2 4.0 3.8 3.0 2.6 3.3
Non-Pensioner 2.6 2.5 2.2 1.8 1.3 1.8
All households 3.3 2.9 2.5 2.0 1.4 2.0
1998–99 Pensioner 6.3 4.4 3.8 3.3 2.5 3.5
Non-Pensioner 3.0 2.6 2.3 1.9 1.3 1.9
All households 3.9 3.1 2.6 2.1 1.4 2.1
1999–00 Pensioner 6.9 4.8 4.1 3.4 2.7 3.7
Non-Pensioner 3.2 2.9 2.4 2.0 1.3 2.0
All households 4.2 3.4 2.7 2.2 1.4 2.2
2000–01 Pensioner 7.1 4.9 4.3 3.7 2.7 3.9
Non-Pensioner 3.1 2.8 2.4 2.0 1.4 2.0
All households 4.2 3.3 2.7 2.2 1.5 2.2
2001–02 Pensioner 7.0 5.0 4.2 3.8 2.8 4.0
Non-Pensioner 3.7 2.9 2.4 2.0 1.3 2.0
All households 4.7 3.3 2.8 2.3 1.4 2.2
2002–03 Pensioner 7.1 4.6 3.9 3.6 3.0 3.9
Non-Pensioner 3.7 3.0 2.6 2.1 1.4 2.1
All households 4.6 3.4 2.9 2.4 1.6 2.4
1Household reference person is economically inactive and over minimum state pension age.
2Council tax is not paid in Northern Ireland.
3Equivalised disposable income at the boundary point between two quintile groups.
4Net council taxes after deducting benefits and discounts.
Source:
Office for National Statistics, based on the analysis "The effects of taxes and benefits on household income", published on the National Statistics website.