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National Insurance

Mr. Willetts: To ask the Chancellor of the Exchequer how many claimants of the Working Families' Tax Credit and the Disabled Person's Tax Credit have earnings below the lower earnings limit to national insurance. [111311]

Dawn Primarolo: It is estimated that there have been 704,500 awards of the Working Families' Tax Credit up to the end of January 2000. Of these about 100,000 were where the single person or the main earner in a couple was earning less than the lower earnings limit of £66 per week.

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10,712 awards of the Disabled Person's Tax Credit were made in the same period and of these 3,279 had earnings less than £66 a week on the same basis.

Mr. Webb: To ask the Chancellor of the Exchequer if he will estimate the total yield from national insurance contributions in 1999-2000 prices in each financial year since 1978-79, broken down by (a) employer national insurance contributions, (b) employee national insurance contributions, (c) national insurance contributions paid by the self-employed, (d) national insurance contributions paid by the others and (e) the national insurance surcharge; if he will provide corresponding estimates of the investment income of the National Insurance Fund; and if he will provide projections for each of these items of the next three financial years. [107660]

Dawn Primarolo: Available information for Great Britain is given in the table.

Yield in 1999-2000 prices
£ billion

(a) Employer NICs(b) Employee NICs(c) Self Employed NICs(d) Other NICs(e) NI surcharge(f) Investment income
1978-7919.5412.110.910.046.181.45
1979-8019.3512.080.750.038.311.52
1980-8119.2212.280.730.038.161.44
1981-8218.6714.030.810.037.941.28
1982-8319.3516.800.950.045.441.01
1983-8420.0617.891.050.053.350.95
1984-8520.3718.231.150.051.650.96
1985-8621.5718.811.160.070.070.95
1986-8722.9419.491.180.050.011.04
1987-8824.1120.281.240.050.000.96
1988-8925.6021.021.380.050.001.17
1989-9026.9820.281.480.050.001.47
1990-9127.3318.631.480.050.001.30
1991-9226.8118.371.440.060.001.37
1992-9326.9618.091.450.060.001.10
1993-9427.9417.591.630.050.000.55
1994-9527.2920.321.630.070.000.42
1995-9627.8820.811.650.060.000.49
1996-9728.3520.951.730.060.000.51
1997-9829.5922.891.780.070.000.49
1998-9931.0623.971.640.060.000.67
1999-200032.1623.481.700.070.000.73
2000-0133.2623.311.350.060.000.83
2001-0233.3523.232.050.060.000.95

Notes:

1. Constant prices using GDP deflation at market prices.

2. Employer NICs are Class 1 secondary, Class 1A and Class 1B contributions.

3. Employee NICs are Class 1 primary contributions.

4. Class 1 contributions are net of contracted-out rebates deducted from contributions but do not allow for rebates paid in the following year.

5. Self Employed NICs are Class 2 and Class 4 contributions.

6. Other NICs are Class 3 contributions.

7. The NI Surcharge account is closed 1986-87 being the last year that anything other than an insignificant amount was paid in.

8. The totals for Employer and Employee NICs contain some payments into the Redundancy and Maternity Pay Fund. These, like payments to the NI surcharge, have now ended.

9. Figures for 1999-2000, 2000-01 and 2001-02 are projections consistent with the November 1999 pre-Budget Report.


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SOCIAL SECURITY

Pensioner Incomes

Mr. Flynn: To ask the Secretary of State for Social Security how much better off than in the previous year, on average (a) single pensioners and (b) pensioner couples

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on Income Support aged (i) under 75, (ii) 75 to 79 and (iii) 80 years or over were in (1) April 1998, (2) April 1999, (3) April 2000 and (4) April 1997, (X) in cash terms, (Y) in real terms and (Z) relative to average earnings, taking into account winter fuel payments and the reduction in VAT on fuel. [111810]

Mr. Rooker: The information requested is in the table.

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The weekly gain to pensioners on Income Support taking into account winter fuel payments and the reduction in VAT on fuel

Actual weekly increase on previous year including winter fuel payment and estimated saving due to reduction in VAT (62)Real value of (62) uprated to April 2000 prices (63)Actual percentage increase on previous yearAverage earnings percentage increase (64)
££%%
Single Pensioners
April 1997 (65)
Under 752.302.453.54.2
75 to 792.402.553.54.2
80 and over2.652.803.64.2
April 1998
Under 752.903.054.24.1
75 to 792.953.104.24.1
80 and over3.053.204.24.1
April 1999
Under 754.554.606.34.9
75 to 794.604.656.24.9
80 and over4.754.856.04.9
April 2000
Under 753.453.454.54.5
75 to 793.553.554.54.5
80 and over3.803.804.54.5
Pensioner Couples
April 1997 (65)
Under 753.553.803.44.2
75 to 793.754.003.54.2
80 and over4.004.253.64.2
April 1998
Under 753.803.953.64.1
75 to 793.904.053.64.1
80 and over4.004.153.54.1
April 1999
Under 757.257.356.64.9
75 to 797.307.406.44.9
80 and over7.407.506.24.9
April 2000
Under 755.355.354.54.5
75 to 795.505.504.54.5
80 and over5.755.754.54.5

(62) Winter fuel payments of £50 per year from January 1998 to November 1999 and then £100 from December 1999, per Income Support claimants, divided by 52 to give weekly increase. Saving due to reduction in VAT on fuel estimated at £16 per year divided by 52 to give weekly gain.

(63) For income related benefits the Rossi index (Retail Prices Index less rent, local taxes and mortgage interest payment) as published by the Office for National Statistics.

(64) Average Earnings are taken from the New Earnings Survey (NES) estimates of earnings for all full-time adult employees, as published by the Office for National Statistics.

(65) Winter fuel payments not payable until 9 November 1998.

Note:

The figures are rounded to the nearest 5 pence at each uprating.


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Mr. Paul Marsden: To ask the Secretary of State for Social Security if he will list by decile the (a) total average income per week and (b) percentage change in that in each year since 1979, for pensioners, (i) in

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Shropshire and (ii) nationally; and if he will make a statement. [111913]

Mr. Rooker: The information is not available in the format requested. Such information as is available is in the tables.

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Average (median) net income of pensioners by decile of the net income distribution (UK, 1979 to 1996-97)

YearD1D2D3D4D5D6D7D8D9D10
Decile of the pensioner couples net income distribution
197990102109116126139153181218310
198196107115121128140157187227342
1987103119129140153169192225279462
1988101116125135151171199239294505
1989101116127137149166195228288445
1990-9197116127141159182212250318497
1992107128139156174198231272333512
1993106130143159179200230269338506
1994-95116136152167185207232273357506
1995-96113137152169191215244297364555
1996-97113140154169191220254298385562
Change 1979 to 1996-97 (percentage)25374146515966647681
Decile of the single pensioners net income distribution
19795258636872768188105155
19815562687377828795113162
198757657380869299109135209
198855637180869198110144217
198953647078859096111147227
1990-91576575828995104124162258
19926069798894100111130166283
199363728293100107115131168242
1994-9565758595103111122141179269
1995-96657991101109116127148180263
1996-97637691101110118133154187258
Change 1979 to 1996-97 (percentage)22324548525566757867

Notes:

1. All money amounts are given in £ per week, at July 1997 prices.

2. Single pensioners are defined as single (non-cohabitating) people over State pension age (65 for men, 60 for women); pensioner couples are defined as couples (married or cohabiting) where the man is over State pension age.

3. For any given decile of the income distribution, the average amounts refer to the median net income before housing costs within that decile.

4. The distribution of income is calculated on the net income before housing costs measure. Separate distributions are calculated for pensioner couples and single pensioners in each year. Figures are not available for the distribution of pensioner couples and single pensioners combined.

5. Information is given for all years for which comparable Pensioners' Incomes data, derived from the Family Expenditure Survey, are available. Information for 1997-98, based on the Family Resources Survey is available but has not been included because it is not comparable with Family Expenditure Survey based estimates.

6. All years up to and including 1993 are calendar years, except 1990-91 which refers to the combined calendar years 1990 and 1991. All years from 1994-95 onwards are financial years.

7. All estimate are subject to a high degree of sampling error, since they are based on small sample sizes, and should therefore be treated with caution. In particular, these figures should not be used to estimate changes over time, unless over a period of several years.

8. Estimates are given for the United Kingdom. Estimates are not available for Shropshire due to small sample sizes.

Source:

Family Expenditure Survey.


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28 Feb 2000 : Column: 165W

Mr. Hilary Benn: To ask the Secretary of State for Social Security if he will state, for (a) 1970, (b) 1980, (c) 1990 and (d) the latest year for which information is available, at 1999-2000 prices, the percentage of people aged 65 years and over whose annual incomes were (i) £4,000 and below, (ii) £4,001 to £6,000, (iii) £6,001 to £8,000, (iv) £8,001 to £10,000, (v) £10,001 to £15,000, (vi) £15,001 to £20,000 and (vii) over £20,000. [112046]

Mr. Rooker: The information is not available in the format requested. Such information as is available is in the table.

Net benefit unit income of people aged 65 years and over
Percentage

Annual net income of benefit unit19811990-911996-97
People aged 65 and over in couples
Less than £4,000*1*
£4,001-£6,00018114
£6,001-£8,000 422816
£8,001-£10,000151722
£10,001-£15,000162429
£15,001-£20,0005914
More than £20,00041015
All individuals100100100
Single persons aged 65 and over
Less than £4,000382413
£4,001-£6,000484635
£6,001-£8,00081327
£8,001-£10,0004611
£10,001-£15,0002611
£15,001-£20,000122
More than £20,000122
All individuals100100100
All persons aged 65 and over
Less than £4,00018116
£4,001-£6,000322718
£6,001-£8,000262121
£8,001-£10,000101217
£10,001-£15,00091621
£15,001-£20,000369
More than £20,000279
All individuals100100100

Notes:

1. Estimates are rounded to the nearest 1 per cent., but are not necessarily accurate to that degree. Estimates of less than 0.5 per cent. are denoted by "*". Columns may not sum to 100 per cent. due to rounding.

2. Income is defined as the net income before housing costs of the benefit unit, expressed in July 1999 prices. Benefit units are defined as a single person or couple (married or cohabiting) and any dependent children.

3. Percentage estimates relate to the proportion of individuals aged over 65, whose benefit unit income falls into a given category.

4. Income amounts are "unequivalised" (i.e. they have not been adjusted to take account of the size and composition of each benefit unit). This means that a comparison between the benefit unit incomes of someone in a couple and a single person does not give any indication of relative living standards. Therefore, results are provided separately for people in couples and single persons. The table for people in couples and single persons combined can be used only to look at changes in income level over time--it should not be used as a measure of the distribution of incomes in the context of relative living standards.

5. Most components of income are reported in the Family Expenditure Survey as weekly or monthly amounts, which have then been converted to annual amounts for the purposes of this analysis. No account has been taken of variations in the income of a benefit unit over the year.

6. Figures are given for the calendar year 1981, the combined calendar years 1990 and 1991, and the financial year 1996-97--the latest year for which comparable estimates are available.

7. There is no information of this type readily available prior to 1979.

Source:

Family Expenditure Survey


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