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SOCIAL SECURITY
Pensioner Income
Mr. Viggers: To ask the Secretary of State for Social Security what are (a) the total income of a single man aged 65 years who has no savings or resources, taking account of guaranteed minimum pension, housing benefit and council tax benefit, (b) the retirement pension payable to a single man aged 65 years who has savings above the means- testing limits, (c) the difference per annum between (a) and (b), and (d) the amount of money which would be required to purchase an annuity to fund (c). [81913]
Mr. Timms:
The amounts of Housing Benefit and Council Tax Benefit that a person receives depends on local factors as well as personal circumstances. This individual is assumed to have no pension above the basic
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pension and no savings and so is eligible for £75 Minimum Income Guarantee. This hypothetical individual with the average amount of Housing Benefit and the average amount of Council Tax Benefit received by those on Income Support aged 60 or over would receive £127 a week in Income Support, Housing Benefit and Council Tax Benefit.
Retirement Pension consists of two main components, the basic State pension and additional pension, also known as SERPS. This individual is assumed to be a recently retired man who has at least £16,000 capital and who receives no income from his capital. This hypothetical individual with the average basic State pension and the average gross SERPS would receive £108 a week.
The difference in income is £19 a week.
At March 1999 annuity rates, a lump sum of £14,000 would be required for a single 65 year old man to purchase an annuity that provides this level of weekly income. This is less than the £16,000 capital limit for income related benefits.
Mr. Webb:
To ask the Secretary of State for Social Security, pursuant to his answer to the hon. Member for Kettering (Mr. Sawford) of 19 April 1999, Official Report, column 465, on occupational pensions, what assessment he has made of the reasons for the reported rise in occupational pension coverage. [82061]
Mr. Timms:
A number of factors are likely to have contributed to the rise in take up. Increased awareness of pensions generally in the light of the public debate generated by the pensions review, launched in July 1997;
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improvements in the quality of information about pensions; and increased awareness of the value of occupational pensions in the light of mis-selling problems associated with personal pensions.
Mr. Webb:
To ask the Secretary of State for Social Security if he will list the categories of people who can be credited entitlement to (a) the basic state pension, (b) SERPS and (c) the proposed second state pension; and if he will make a statement on the reason for the differences in the crediting arrangements for each. [81991]
Mr. Timms:
The categories of people who can be credited with National Insurance contributions to assist them to satisfy the second contribution condition for basic State pension are:
It is proposed that carers and long-term disabled people with broken work records will be credited with entitlement to the State Second Pension. In addition, those earning between the Lower Earnings Level and £9,000 will receive a boost to their State Second Pension by being treated as if they had had earnings at that level.
The main reason for crediting entitlement to the basic pension is the recognition that it would be unreasonable to allow the future entitlement of people who are involuntarily out of work through unemployment or sickness or whose earning power in work is seriously depleted by these contingencies, to be jeopardised by deficiencies in their contribution records.
SERPS is purely a contributory earnings-related second pension scheme which does not attract any form of credits. It gives insufficient help to those who need it most. This is why we are proposing the new State Second Pension to replace SERPS.
Mr. Field:
To ask the Secretary of State for Social Security if he will estimate the (a) numbers and (b) percentages of single parents on income support, who have mortgages, for each of the past 10 years. [82164]
Angela Eagle:
The information is not available in the form requested. Such information as is available is in the table.
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Note:
1. Weekly income figures are rounded to the nearest pound and the lump sum figure is rounded to the nearest thousand pounds.
Young people for the tax years containing their 16th, 17th and 18th birthdays;
Men for the tax years containing their 60th birthday and the four succeeding years, provided they have no liability for Class 1 or 2 National Insurance contributions;
Persons undergoing courses of full time approved training;
Invalid Care Allowance recipients;
Family Credit recipients;
Disability Working Allowance recipients;
Persons who are either in receipt of Jobseeker's Allowance or unemployed and satisfy specified conditions which include that they are available for and actively seeking paid employment;
Persons incapable of work through illness or disability;
Statutory Maternity Pay recipients.
There are no arrangements for crediting people with entitlement to SERPS.
| Year | Number of claimants | Percentage of all Single parents on Income Support |
|---|---|---|
| 1994-95 | 130,000 | 14 |
| 1995-96 | 130,000 | 13 |
| 1996-97 | 150,000 | 14 |
| 1997-98 | 110,000 | 11 |
Notes:
1. Figures are subject to a degree of sampling error.
2. Figures have been rounded to the nearest thousand, percentages to the nearest integer.
3. The estimates are based on sample counts that have been adjusted for non-response using multi-purpose grossing factors that control for region, Council Tax Band and a number of demographic variables. Estimates are subject to sampling error and to variability in non-response.
4. Benefit receipt is based on self-assessment and therefore may be subject to mis-reporting.
5. Income-based Jobseekers' Allowance (introduced in October 1996) has been included in the analysis for the 1997-98 financial year, but not for the 1996-97 year, since it could not be separately identified from Unemployment Benefit.
Source:
Family Resources Survey (Great Britain).
All Work Test
Mr. Gordon Prentice: To ask the Secretary of State for Social Security what medical conditions permanently exempt a person in receipt of benefits from the all work test. [82152]
Mr. Bayley: Regulations list a number of medical conditions and other circumstances which will result in a person being treated as incapable of work without the need for an assessment under the All Work Test. The relevant conditions, which are not all expressed in terms of specific diseases or disablements, are set out. Many, but not all, of these conditions will be permanent: If there is a possibility of improvement in an individual case the exemption will be reviewed periodically and in some circumstances it may become appropriate to carry out an All Work Test assessment.
Medical conditions qualifying for exemption from the All Work Test (Regulation 10 of the Social Security (Incapacity for Work) (General) Regulations 1995):
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In addition, people will be treated as incapable of work if they
Mr. Gibb:
To ask the Secretary of State for Social Security, pursuant to his answer of 21 April 1999, Official Report, column 592, on winter fuel payments, what is the additional cost of paying the winter fuel payment separately from the basic state pension. [82190]
Angela Eagle:
To include the full amount of the Winter Fuel Payment with the Retirement Pension of every eligible pensioner would involve using a qualifying week at the end of the previous winter. This is because Retirement Pension order books last for up to 20 weeks and are printed and issued well in advance. As a result, large numbers of people who retire after the qualifying week would not be eligible for a payment the following winter. In addition, allowing such a substantial interval to elapse would mean changes of household circumstances amongst many of those in the eligible population.
It would be possible to make a payment of £50 to every eligible pensioner at the beginning of each winter by including that amount along with their qualifying benefit. However, an exercise would then be necessary, after the qualifying week, to identify those who live alone or those who are the only eligible pensioner in their household, and make an additional £50 payment. This method would correctly deliver £50 payments to about 4.5 million pensioners but require two separate payments to about 5.5 million pensioners every winter.
The administration cost of this option is estimated at around £12.5 million in the first year and £10 million in subsequent years. The cost of the present delivery mechanism is estimated at £11 million each year. Therefore, including the payment along with the qualifying benefit is estimated to cost an additional £1.5 million in the first year, followed by a saving of around £1 million in subsequent years. The method of payment for this winter is designed to give all eligible pensioners a single, well timed payment before Christmas.
Methods of payment for future years will be kept under review.
(i) tetraplegia;
(ii) persistent vegative state;
(iii) dementia;
(iv) paraplegia or uncontrollable involuntary movements or ataxia which effectively renders the sufferer functionally paraplegic;
(v) a severe learning disability;
(vi) a severe and progressive neurological or muscle wasting disease;
(vii) an active and progressive form of inflammatory polyarthritis;
(viii) a progressive impairment of cardio-respiratory function which severely and persistently limits effort tolerance;
(ix) dense paralysis of the upper limb, trunk and lower limb on one side of the body;
(x) multiple effects of impairment of function of the brain or nervous system causing severe and irreversible motor, sensory and intellectual deficits;
(xi) manifestations of severe and progressive immune deficiency states characterised by the occurrence of severe constitutional disease or opportunistic infections or tumour formation;
(xii) a severe mental illness.
are registered blind;
are terminally ill;
have an 80 per cent. disablement assessment;
are receiving the highest rate care component of Disability Living Allowance, or certain allowances payable under the Industrial Injuries and War Pensions schemes for attendance needs.
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