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11 Oct 2004 : Column 43W—continued
Pension Credit
Mr. Battle: To ask the Secretary of State for Work and Pensions what his Department's latest estimate is of (a) the number of pensioners, (b) the number entitled to pension credit and (b) the number taking up pension credit in Leeds, West. [189948]
Malcolm Wicks:
The number of people in receipt of state pension in Leeds, West was 14,500 (rounded to the nearest 100) on 30 September 2003, the latest date for which a figure is available. Information on the number of people likely to be eligible for pension credit is not available at constituency level. However, we estimate that approximately 400,000 households in the
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Yorkshire and Humberside region, corresponding to approximately 500,000 individuals (rounded to the nearest 50,000), are likely to be eligible for pension credit in 2004–05. Information on the number of pension credit recipients in Yorkshire and Humberside and Leeds, West is given in the table.
| Households | Individuals | |
|---|---|---|
| Yorkshire and Humberside | 251,830 | 308,495 |
| Leeds, West | 4,435 | 5,275 |
Notes:
1. Figures are rounded to the nearest five.
2. Individual recipients include a small number of partners under age 60.
Mr. Dhanda: To ask the Secretary of State for Work and Pensions what plans he has to change the provision of mortgage assistance under pension credit. [189726]
Malcolm Wicks: Currently customers have their benefit entitlement in respect of housing costs calculated using a standard interest rate. This is based on the average rates charged by the top 23 building societies and is currently 5.88 per cent.
We hope to lay legislation later this year that will revise the scheme for customers in receipt of pension credit, income support and income-based jobseeker's allowance. The revised legislation will replace the standard interest rate with a standard tracker rate that will use the Bank of England base rate as a baseline and abolish the current 5 per cent. de minimus rule.
Mr. Willetts: To ask the Secretary of State for Work and Pensions if he will estimate the number of (a) pensions and (b) pensioner households eligible for the pension credit, broken down by (i) guarantee credit and (ii) savings credit for (A) each year up to 2014 and (B) appropriate intervals up to 2034. [187349]
Malcolm Wicks: Estimates of future Pension Credit eligibility are not available as policy in relation to the structure and uprating of Pension Credit has only been determined up to the end of the current Parliament. Projections of eligibility consistent with the Spending Review expenditure plans, up to 2007/08, are shown in tables 1 and 2 below. These are on the assumption that current policies are maintained for 2006/07 and 2007/08, but this should not be taken to imply that a decision on future levels of payment has been taken. Forecasts will be updated following any further decisions on rates of payment.
| Year | Guarantee element only | Guarantee element and savings element | Savings element only | Pension Credit |
|---|---|---|---|---|
| 2004–05 | 1,250,000 | 1,700,000 | 1,700,000 | 4,650,000 |
| 2005–06 | 1,150,000 | 1,850,000 | 1,800,000 | 4,800,000 |
| 2006–07 | 1,150,000 | 1,900,000 | 1,850,000 | 4,900,000 |
| 2007–08 | 1,150,000 | 1,950,000 | 2,050,000 | 5,150,000 |
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| Year | Guarantee element only | Guarantee element and savings element | Savings element only | Pension Credit |
|---|---|---|---|---|
| 2004–05 | 950,000 | 1,400,000 | 1,200,000 | 3,550,000 |
| 2005–06 | 850,000 | 1,500,000 | 1,250,000 | 3,650,000 |
| 2006–07 | 850,000 | 1,550,000 | 1,350,000 | 3,750,000 |
| 2007–08 | 850,000 | 1,600,000 | 1,450,000 | 3,900,000 |
Notes:
1. Projections with this breakdown are only available for private households. In addition to pensioners in private households, there are approximately 200,000 pensioners in care homes eligible for Pension Credit. The figures in Tables 1 and 2 above do not include pensioners in care homes.
2. Estimates for private households and individuals in 2004–05 are based on the Family Resources Survey data for 2002–03 projected forward to 2004–05 to reflect changes in taxes, benefit rates and pensioners' incomes.
3. For projections beyond 2004–05 it has been assumed that pensioners' incomes will rise in line with average earnings; the guarantee credit will be uprated in line with average earnings; and the savings credit threshold will be uprated in line with prices.
4. The numbers entitled under these assumptions have then been scaled up to reflect growth in the pensioner population, using projections from the Government Actuary's Department.
5. Projections have been rounded to the nearest 50,000 cases, are subject to a wide margin of error and should be used as broad indications of the likely eligible population only.
6. A pensioner household is defined as single persons aged 60 or over and couples where at least one partner is aged 60 or over. Individuals are single pensioners with eligibility and both partners in a couple with eligibility.
7. Rows might not sum exactly due to rounding.
Pension Payments
Richard Younger-Ross: To ask the Secretary of State for Work and Pensions how many people suffered late payment of pensions in each of the last 12 (a) weeks and (b) months; what procedures are in place to resolve such delays; and what the average length of time taken to resolve these problems is. [188116]
Mr. Pond: Information is not available in the format required. There are a variety of reasons why payments may be delayed but customers who cannot access their funds, and are in hardship, can approach The Pension Service for an emergency payment.
Bob Russell: To ask the Secretary of State for Work and Pensions (1) whether UK state pensions paid to British citizens living in dependent territories, formerly domiciled in the UK, are increased in line with pensions in the UK; [190043]
(2) if he will list those countries where UK citizens living in retirement can obtain the UK state pension; and in which countries the pension is frozen at the figure when the citizen left the UK to live abroad; [190041]
(3) if he will introduce measures so that British citizens living in dependent territories and formerly domiciled in the UK can have their state retirement pension increased in line with pensions in the UK. [190030]
Malcolm Wicks:
The UK state pension is payable in all countries abroad to those who are entitled to it but is only uprated for UK pensioners living overseas where there is a legal requirement or reciprocal social security agreement to do so.
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It is uprated in countries within the European Economic Area 1 including Gibraltar 2 under the provisions of the EC Social Security legislation and the following countries with which the UK has reciprocal agreements: Barbados, Bermuda 2 , the Channel Islands, Israel, Jamaica, Malta, Mauritius, the Philippines, Switzerland, Turkey, the USA and the now separate republics of the former Federal People's Republic of Yugoslavia (the Federal Republic of Yugoslavia (Serbia and Montenegro); Bosnia-Herzegovina, Croatia, Slovenia and the Former Yugoslav Republic of Macedonia). The state pension is not uprated in any other country and we have no plans to do so.
Notes:
1 This includes Cyprus. Although the British sovereign base areas of Akrotiri and Dhekelia are British dependent territories and not part of the Republic of Cyprus, article 4(2) of the reciprocal agreement with Cyprus provides that if a person would be entitled to a UK state pension, it shall be payable to them while they are in Cyprus, including the sovereign base areas, as if they were in the UK.
2 British dependent territory.
Pensions Bill
Mr. Waterson: To ask the Secretary of State for Work and Pensions what progress has been made on the consultation on Clauses 35, 36, 39 and 40 of the Pensions Bill; and if he will make a statement. [189763]
Malcolm Wicks: Over the summer officials met with a wide cross-section of pensions industry and other representatives. They also received and reviewed a large number of written comments.
My noble Friend, the Baroness Hollis has said that she will be sharing a report detailing the consultation process and its findings with the members of the Grand Committee. This is expected in the next two weeks.
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