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Access Committee for England

Mr. Berry: To ask the Secretary of State for Social Security when he plans to make a statement on his review of the role and funding of the Access Committee for England. [20360]

Mr. Burt: I am considering, with colleagues, the detailed issues involved and we hope to announce our decision in the near future.

Outstanding Payments

Mr. Betts: To ask the Secretary of State for Social Security what values of payments were outstanding within his Department on 5 March, which were beyond the date on the invoice and, where no date was specified, older than 28 days. [20485]

Mr. Burt: The information is not available in the format requested. The Department of Social Security, in accordance with Treasury guidelines, pays its invoices within 30 days of receipt of a valid invoice. A recent sample showed a 96 per cent. level of compliance with this guideline.

To provide the information requested would involve further investigation and could be retrieved only at disproportionate cost.

Earnings Top-up Pilot Scheme

Mr. Nigel Evans: To ask the Secretary of State for Social Security when he expects to commission independent research into the earnings top-up pilot scheme. [20608]

Mr. Burt: I have today awarded contracts to three research organisations--the Policy Studies Institute, the Institute for Employment Research and the Centre for Research in Social Policy. Over the next three years, these institutes will undertake a detailed programme of research to evaluate the effectiveness of the earnings top-up pilot.

Earnings top-up is a new step in the Government's programme to strengthen incentives to work. The challenge is to discover whether topping up wages for

12 Mar 1996 : Column: 596

workers without dependent children helps them to get jobs and stay in work. Family credit tackles this issue already for families with children, helping over 600,000 families.

The research programme lasts three years. It starts this year--before earnings top-up is introduced--to set a baseline against which progress can be measured. It then continues the investigation in succeeding years to assess the impact of earnings top-up, comparing the pilot areas to the four control areas.

The Policy Studies Institute will survey over 30,000 employers, workers and unemployed people, to look at the changing circumstances of people including movement into or out of work, and the wages they receive.

The Institute of Employment Research will look at how earnings top-up affects local labour markets, that is, at changes in the rates of employment, unemployment, and any effect on local wage levels.

The Centre for Research in Social Policy will carry out more in-depth interviews with people receiving earnings top-up, those in low-paid work not receiving it, and employers. This will build up a detailed picture of reactions and attitudes to the pilot benefit.

This £3 million research project is the largest the Department of Social Security has ever undertaken but it represents excellent value for money. To extend earnings top-up immediately to all low-paid people without dependent children would be a large investment, of the order of £500 million. We are taking the prudent course of testing its effectiveness first on a smaller scale.

At the end of the three years, we expect to have the information we need to decide whether earnings top-up is of value in helping people to move into work and to avoid unemployment.

I shall, in due course, be placing further details of the research programme in the Library.

Pensioner Incomes

Sir Andrew Bowden: To ask the Secretary of State for Social Security if he will provide an updated analysis for each quintile of pensioner incomes for single pensioners, pensioner couples and all pensioner units on the same basis as that given on 7 February 1995, Official Report, columns 196-200, table 1. [18220]

Mr. Heald: The information is in the tables.

When comparing this reply to the information given on 7 February 1995 it should be noted that the "single" and "couple" table headings for the numbers of pensioner units in each quintile were transposed in the previous reply.

12 Mar 1996 : Column: 595

Table 1: The Average Incomes of Pensioners 1979-1993 (by quintile-quintile 1=lowest)--(£ per week July 1993 prices)(a) Single pensioners

Income source	Quintile 1		Quintile 2		Quintile 3		Quintile 4		Quintile 5		Total
	1979	1993	1979	1993	1979	1993	1979	1993	1979	1993	1979	1993
Earnings(32)	0.40	0.00	0.10	0.10	0.40	0.30	3.80	2.10	25.40	24.50	6.00	5.40
Benefit income	51.70	60.80	60.10	73.10	63.00	84.70	62.50	83.20	56.70	84.80	58.80	77.30
Investment	2.10	4.10	2.20	5.10	2.40	4.90	7.00	13.30	33.40	69.10	9.40	19.30
Occupational	0.60	2.40	1.90	6.90	3.40	9.40	8.00	23.70	37.60	87.40	10.30	26.00
Other(32)	0.50	0.30	0.20	0.50	0.30	0.20	1.00	0.70	1.00	0.40	0.60	0.40
Gross income	55.30	67.60	64.40	85.70	69.40	99.60	82.40	123.10	154.10	266.10	85.00	128.40
Deductions	5.70	7.10	4.70	6.90	4.40	7.30	7.40	11.50	29.90	50.10	10.40	16.60
Net income BHC (mean)	49.60	60.50	59.70	78.80	65.00	92.20	75.00	111.60	124.10	216.00	74.60	111.80
Net income AHC (mean)	39.20	44.90	48.70	59.90	52.80	68.60	61.30	95.30	110.10	202.90	62.40	94.30
Net income BHC (median)	51.20	63.10	61.00	80.70	67.70	93.10	75.40	110.00	107.60	172.60	67.70	93.10
Net income AHC (median)	41.30	49.80	48.70	59.70	53.60	67.40	61.70	94.50	95.40	160.90	53.60	67.40

(32) Indicates that sample sizes are too small to provide reliable estimates. Figures are shown only to demonstrate how totals are arrived at. All figures before housing costs (BHC) unless otherwise stated. After housing costs = AHC.

1. All average amounts are means except where otherwise stated.

2. Components may not sum to totals owing to rounding.

3. Pensioner units are defined as single people over state pension age (SPA) and couples in which the husband, or head, is over SPA.

4. Estimates of percentage growth are based on unrounded income figures and may not therefore be the same as those calculated from the rounded amounts in the table.

5. Estimates of growth in total net incomes by quintile are based on medians. Estimates of growth of components of income and total incomes of all pensioners are based on means.

6. Estimates are based on the Family Expenditure Surveys.

12 Mar 1996 : Column: 597

(b) Pensioner couples

Income source	Quintile 1		Quintile 2		Quintile 3		Quintile 4		Quintile 5		Total
	1979	1993	1979	1993	1979	1993	1979	1993	1979	1993	1979	1993
Earnings(33)	0.30	1.50	1.30	0.90	6.00	7.50	28.40	16.50	96.80	55.40	26.50	16.30
Benefit income	86.60	97.10	94.40	116.50	94.20	119.00	89.30	118.80	79.80	110.20	88.90	112.30
Investment	2.80	5.80	3.70	7.90	5.90	20.20	10.80	30.10	65.60	139.90	17.70	40.70
Occupational	2.70	8.40	7.40	20.70	19.40	36.80	38.90	83.40	97.60	197.70	33.10	69.30
Other(33)	0.30	0.20	0.40	0.30	1.70	0.70	0.90	1.20	1.10	1.20	0.90	0.70
Gross income	92.60	112.90	107.30	146.20	127.20	184.30	168.20	250.00	341.00	504.50	167.00	239.40
Deduction	6.20	10.30	5.70	11.10	8.50	14.60	18.60	25.40	81.90	88.50	24.10	29.90
Net income BHC (mean)	86.40	102.60	101.50	135.20	118.70	169.60	149.60	224.60	259.10	416.00	142.90	209.40
Net income AHC (mean)	72.60	84.40	85.50	116.60	102.90	154.90	132.60	214.30	235.10	401.50	125.60	194.20
Net income BHC (median)	86.60	105.60	100.60	134.40	116.70	169.90	147.50	220.20	224.10	366.80	116.70	169.00
Net income AHC (median)	72.90	92.10	84.60	115.80	100.60	155.50	131.60	209.60	203.50	349.90	100.60	155.50

(33) Indicates that sample sizes are too small to provide reliable estimates. Figures are shown only to demonstrate how totals are arrived at. All figures before housing costs (BHC) unless otherwise stated. After housing costs = AHC.

Notes:

1. All average amounts are means except where otherwise stated.

2. Components may not sum to totals owing to rounding.

3. Pensioner units are defined as single people over state pension age (SPA) and couples in which the husband, or head, is over SPA.

4. Estimates of percentage growth are based on unrounded income figures and may not therefore be the same as those calculated from the rounded amounts in the table.

5. Estimates of growth in total net incomes by quintile are based on medians. Estimates of growth of components of income and total incomes of all pensioners are based on means.

6. Estimates are based on the Family Expenditure Surveys.

12 Mar 1996 : Column: 597

(c) All pensioner units

Income source	Quintile 1		Quintile 2		Quintile 3		Quintile 4		Quintile 5		Total
	1979	1993	1979	1993	1979	1993	1979	1993	1979	1993	1979	1993
Earnings(34)	0.30	0.30	0.50	0.70	0.90	2.40	10.70	6.20	52.90	38.00	13.10	9.50
Benefit income	63.60	73.40	72.30	88.50	70.40	93.80	71.20	100.00	68.40	96.90	69.20	90.50
Investment	2.30	4.50	2.80	5.90	3.10	8.10	8.60	20.90	44.70	97.40	12.30	27.40
Occupational	1.30	4.50	3.90	11.30	6.50	15.70	17.50	46.00	61.70	133.90	18.20	42.30
Other(34)	0.40	0.30	0.20	0.40	0.50	0.30	1.40	0.90	0.90	0.80	0.70	0.50
Gross income	67.90	83.00	79.80	106.70	81.30	120.40	109.40	173.90	228.50	367.00	113.40	170.20
Deductions	5.90	8.20	5.10	8.40	5.30	8.80	10.30	16.90	49.20	65.80	15.10	21.60
Net income BHC (mean)	62.00	74.80	74.70	98.40	76.10	111.60	99.10	157.00	179.30	301.20	98.20	148.50
Net income AHC (mean)	54.20	60.20	59.50	71.00	63.70	98.70	85.40	144.10	158.30	285.90	84.20	131.90
Net income BHC (median)	54.40	67.30	63.40	86.10	69.40	98.50	86.30	142.40	165.30	262.40	69.40	98.50
Net income AHC (median)	44.60	54.00	49.30	61.70	54.50	81.60	69.30	126.00	145.20	250.40	54.50	81.60

(34) Indicates that sample sizes are too small to provide reliable estimates. Figures are shown only to demonstrate how totals are arrived at. All figures before housing costs (BHC) unless otherwise stated. After housing costs = AHC.

1. All average amounts are means except where otherwise stated.

2. Components may not sum to totals owing to rounding.

3. Pensioner units are defined as single people over state pension age (SPA) and couples in which the husband, or head, is over SPA.

4. Estimates of percentage growth are based on unrounded income figures and may not therefore be the same as those calculated from the rounded amounts in the table.

5. Estimates of growth in total net incomes by quintile are based on medians. Estimates of growth of components of income and total incomes of all pensioners are based on means.

6. Estimates are based on the Family Expenditure Surveys.

12 Mar 1996 : Column: 599

Average income change (per cent.)--Single Pensioners (S), Pensioner Couples (C) and Pensioner Units (U)(b) Growth in Pensioner Income 1979-1993

	Quintile 1			Quintile 2			Quintile 3
	S	C	U	S	C	U	S	C	U
Earnings(35)	-100	425	-12	-25	-32	22	-23	26	178
Benefit Income	18	12	15	22	23	22	35	26	33
Investment Income	98	109	100	135	111	111	102	243	162
Occupational Pension	270	215	245	264	180	190	180	90	142
Other(35)	-43	-30	-36	203	-37	56	-21	-59	-32
Gross Income	22	22	22	33	36	34	43	45	48
Deductions	24	66	39	47	93	63	65	72	68
Net Income BHC (median)	23	22	24	32	34	36	38	45	42
Net Income AHC (median)	21	26	21	22	37	25	26	54	50

Average income change (per cent.)--Single pensioners (S), Pensioner Couples (C) and Pensioner Units (U)

	Quintile 4			Quintile 5			Total
	S	C	U	S	C	U	S	C	U
Earnings(35)	-44	-42	-42	-4	-43	-28	-10	-38	-27
Benefit income	33	33	40	50	38	42	32	26	31
Investment income	90	177	144	106	113	118	105	130	123
Occupational pension	195	115	163	133	103	117	152	109	133
Other(35)	-33	38	-39	-62	8	-11	-30	-18	-24
Gross income	49	49	59	73	48	61	51	43	50
Deductions	56	37	64	67	8	34	59	24	43
Net income BHC (median)	46	49	65	60	64	59	50 (mean)	47 (mean)	51 (mean)
Net income AHC (median)	53	59	82	69	72	72	51 (mean)	55 (mean)	57 (mean)

(35) Indicates that sample sizes are too small to provide reliable estimates. Figures are shown only to demonstrate how totals are arrived at. All figures before housing costs (BHC) unless otherwise stated. After housing costs=AHC.

1. All average amounts are means except where otherwise stated.

2. Components may not sum to totals owing to rounding.

3. Pensioner units are defined as single people over state pension age (SPA) and couples in which the husband, or head, is over SPA.

4. Estimates of percentage growth are based on unrounded income figures and may not therefore be the same as those calculated from the rounded amounts in the table.

5. Estimates of growth in total net incomes by quintile are based on medians. Estimates of growth of components of income and total incomes of all pensioners are based on means.

6. Estimates are based on the Family Expenditure Surveys.

Table 2: The numbers of pensioner units in each quintile of the net equivalised income distribution for pensioners.

	Q1	Q2	Q3	Q4	Q5
(a) Pensioner couples
Under 75	300,000(36)	350,000	350,000	400,000	400,000
75 and over	(36)250,000	(36)200,000	(36)150,000	(36)100,0001	(36)100,000
Total	550,000	550,000	550,000	550,000	550,000
(b) Single pensioners
Under 75	400,000	500,000	400,000	450,000	500,000
75 and over	500,000	400,000	450,000	400,000	400,000
Total	900,000	900,000	900,000	900,000	900,000
(c) All pensioner units
Under 75	700,000	800,000	750,000	900,000	950,000
75 and over	750,000	600,000	650,000	550,000	450,000
Total	1,400,000	1,400,000	1,400,000	1,400,000	1,400,000

(36) These estimates are based on unreliably small sample sizes, and therefore should be treated with caution.

1. Estimates have been rounded to the nearest 50,000. Figures may not sum to totals due to rounding.

2. These estimates are taken from the Family Expenditure Survey and are for private households in the UK.

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