| Previous Section | Index | Home Page |
8 Mar 2005 : Column 1718W—continued
Pension Credit
Mr. Webb: To ask the Secretary of State for Work and Pensions if he will estimate the effect on the number of pensioners in receipt of pension credit in 2009–10 of linking the basic state pension to earnings from 2006–07 onwards. [218691]
Malcolm Wicks [holding answer 28 February 2005]: If the basic state pension was uprated in line with earnings from 2006–07 onwards and the savings credit threshold was increased in line with prices as now, 150,000 fewer benefit units would be in receipt of pension credit by 2009–10. If the savings credit threshold was increased in line with the increase in the basic state pension about 250,000 fewer benefit units would be in receipt by 2009–10.
1. The figure is rounded to the nearest 50,000 to account for the large potential margin for error in the estimate.
Figures are calculated using the department's policy simulation model and the family resources survey 2002–03 projected forward to 2009–10
Mr. Willetts: To ask the Secretary of State for Work and Pensions what the largest possible entitlement for the savings credit element of pension credit has been in each year since its introduction; and what the projection is for each of the next five years on the assumption that the guarantee credit grows in line with earnings and the savings credit grows in line with prices. [219701]
8 Mar 2005 : Column 1719W
Malcolm Wicks: The following table sets out the maximum entitlement to the savings element of pension credit payable for single people and couples for the financial years 2003–04 to 2009–10. The figures for the years 2003–04 to 2005–06 are the actual maximum entitlements to the savings element payable for those years. The figures for subsequent years are estimates based on the assumptions set out in the notes to the table.
Notes:
1. Figures are in line with current uprating policy. The Chancellor announced in the pre-Budget report that the guarantee element of pension credit would be uprated in line with earnings over the current spending round (to 2007–08). The savings credit threshold is currently equal to the maximum rate of basic state pension and is assumed to rise in line with prices.
2. The estimates for the financial years 2006–07 to 2009–10 are based on the 2004 pre-Budget report assumptions for average earnings growth and growth in the retail price index.
Social Security Payments (Pensioners)
Mr. Webb: To ask the Secretary of State for Work and Pensions if he will make a statement on the interaction between pension credit and other social security payments for (a) those in residential care homes and (b) those not in residential care. [220573]
Malcolm Wicks: The policy on charging for residential care is the responsibility of health departments. The current financial assessment for residential care takes account of an individual's income, including benefit income, leaving each resident with a personal expense allowance. Pension credit, which may include an amount of savings credit, is taken into account in the council's financial assessment. For those individuals in receipt of the savings credit, they are left with the amount for personal expenses and in addition receive a savings credit disregard. For individuals living in their own homes and being financially assessed for home care and their non-residential care services, the savings credit is fully disregarded.
Payment of attendance allowance (AA) and disability living allowance (DLA) stops after four weeks residence in a care home, except where a resident can meet the full cost without help from a local authority or other source of public funding (other than payments for free nursing care), as this does not affect payability of AA/DLA for self funders. The mobility component of DLA can continue in payment because care home costs do not cover mobility needs. Pension credit recipients who have been in a care home for 13 weeks or more at the end of the specified qualifying week are not eligible for a winter fuel payment.
8 Mar 2005 : Column 1720W
State Pension
Mr. Webb: To ask the Secretary of State for Work and Pensions how many (a) men and (b) women have had no (i) own-rights or (ii) own or spouse rights entitlement to the basic state pension because they did not have the minimum of 25 per cent. of qualifying years in each of the last 20 years. [219744]
Malcolm Wicks [holding answer 4 March 2005]: The information is not available in the format requested. However, the information in the table shows the number of men and women in receipt of either or both graduated retirement benefit and additional state pension who do not receive any basic state pension.
(28) September
Notes:
1. Numbers are taken from a 10 per cent, sample prior to March 1995 and a five per cent, sample after March 1995 and are therefore subject to a degree of sampling variation.
2. Numbers are rounded to the nearest hundred.
3. Figures include overseas cases.
4. A basic state pension is paid to those who fully or partially satisfy the contribution conditions for a Category A or Category B basic state pension, either in their own right or, where applicable, on the basis of their spouse's or former spouse's National Insurance contributions.
Source:
IAD Information centre 10 per cent., sample prior to March 1995 and a five per cent., sample after March 1995. Figures are as at 31 March or 30 September for the years shown.
Mr. Webb: To ask the Secretary of State for Work and Pensions (1) what estimate he has made of the (a) number and (b) proportion of (i) men and (ii) women who will fail to meet the minimum of 25 per cent. of qualifying years for a basic state pension in (A) each of the next five years, (B) 2010, (C) 2030, (D) 2040 and (E) 2050; and what estimate he has made of the (1) net and (2) gross cost for each of these years of the requirement for a minimum of 25 per cent. of qualifying years entitlement; [219745]
(2) what estimate he has made of the cost of paying pensions under reciprocal agreements to people in other countries who would build up an entitlement to the basic state pension if the 25 per cent. rule on the number of
8 Mar 2005 : Column 1721W
qualifying years were to be removed in (a) each of the next five years, (b) 2010, (c) 2030, (d) 2040 and (e) 2050. [219746]
Malcolm Wicks [holding answer 4 March 2005]: The information is not available in the format requested. However, as at March 2004, there were 13,300 men and 83,000 women in receipt of either or both graduated retirement pension and additional state pension who did not receive any basic state pension. This accounted for less than 1 per cent. of total recipients of state pension.
The additional gross cost would be around £95 million in 2004–05 if those people were treated as having at least nine qualifying years for entitlement to a basic state pension. On the same assumption, approximately £5 million of that sum relates to pensioners living overseas outside the European economic area in a country with which the UK has a reciprocal agreement to uprate state pensions.
1. This cost is provided by the Government Actuary's Department and assumes a full national insurance record for at least nine years.
2. The available data is an extract based on those in receipt of benefits in Great Britain and overseas. There is not sufficient information available on contribution records to provide a more comprehensive estimate, neither is sufficient information available to estimate the net costs.
3. It is also expected that large numbers of overseas cases with a small number of contribution years could become entitled to the basic state pension.
4. The estimate for pensioners living overseas does not include the additional costs of paying basic state pensions to those with less than 25 per cent. qualifying years who live in the European economic area.
| Next Section | Index | Home Page |