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21 Mar 2005 : Column 599W—continued
Pensioner Income
Pete Wishart: To ask the Secretary of State for Work and Pensions what the average difference in pension income between men and women in (a) the UK, (b) Scotland and (c) England was in the latest period for which figures are available; and if he will make a statement. [222919]
Malcolm Wicks: The information is in the tables.
Table 1 gives gross income, net income before housing costs, and net income after housing costs for male and female single pensioners (people over state pension age). The results are based on combined data from the three years 2000–01, 2001–02 and 2002–03.
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Table 2 gives the difference in incomes between male single pensioners and female single pensioners.
| Scotland | England | Great Britain | |
|---|---|---|---|
| Gross | 24 | 40 | 37 |
| Net income BHC | 20 | 29 | 27 |
| Net income AHC | 19 | 28 | 27 |
Notes:
1.Based on pensioners' incomes 2002–03. Because of small sample sizes the results are based on an average of three years of Family Resources Survey (FRS) data. The data is from 2000–01, 2001–02, and 2002–03 where appropriate uprated to 2002–03 prices. Estimates of average incomes may still be vulnerable to random fluctuations in the number of very high income pensioners in each group in the FRS sample. In particular the differences between men and women should be treated with caution.
2.Net income is after direct taxes (including council tax) have been deducted).
3.BHC stand for before housing costs, AHC for after housing costs.
4.Northern Ireland was included in the FRS for the first time in 2002–03. Because the table is based on three years of FRS data results are given for Great Britain rather than the UK.
Pete Wishart: To ask the Secretary of State for Work and Pensions whether his Department plans to continue to use means-testing in the calculation of pensions; and if he will make a statement. [222920]
Malcolm Wicks: This Government's priority when they came to office was tackling the legacy of pensioner poverty. We continue to do this by targeting help on today's poorest pensioners and by encouraging all pensioners to receive the benefits they are entitled to. At the same time the Government believe that empowering individuals to make real and informed choices about working and saving for retirement is fundamental if they are to make sure people get the income in retirement they expect.
Income-testing of benefits has existed since before and after the creation of the Welfare State in 1948. With the introduction of pension credit, and the ease by which it can be applied for, we have moved away from the stigmatising weekly means tests of the past.
Pete Wishart: To ask the Secretary of State for Work and Pensions what changes took place in levels of pensioner poverty between (a) 1997 and June 2001 and (b) June 2001 and 2005; and if he will make a statement. [222924]
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Malcolm Wicks: We have taken many steps to tackle pensioner poverty, including the introduction of pension credit and winter fuel payment, and since 2000 there has been a 7 per cent. real rise in the level of the basic state pension. As a result of these measures during 2005–06 we will be spending extra £11 billion more on pensioners, including £5 billion more on the poorest third.
Poverty is about more than low income; it also impacts on the way people live—their health, housing and the quality of their environment. The sixth annual 'Opportunity for all' report (Cm 6239), published in September 2004, sets out the Government's strategy for tackling poverty and social exclusion and presents information on the indicators used to measure progress against this strategy.
Analysis suggests our overall strategy to tackle pensioner poverty is having an impact on pensioner incomes. The Household Below Average Income figures present the number and proportion of pensioners living in households with incomes below fixed and relative thresholds. The latest publication shows that between 1996–97 and 2002–03, 1.8 million fewer older people lived in absolute low income on un-rounded figures. Inpercentage terms, this equated to a fall of around two thirds. Further information is presented in the following table:
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Information for 2003–04 onwards is not available. The latest available information about the number of pensioners living in relative low income, measured by households with incomes below 60 per cent. of contemporary median income, is presented in the following table:
| After housing costs | Before housing costs | |
|---|---|---|
| 1996–97 | 2.7 | 2.1 |
| 1997–98 | 2.7 | 2.2 |
| 2001–02 | 2.2 | 2.2 |
| 2002–03 | 2.2 | 2.1 |
Source:
Households Below Average Income 2002–03
Households Below Average Income figures for 2003–04 are due to be published on 30 March. A copy will be placed in the Library.
Pete Wishart: To ask the Secretary of State for Work and Pensions what the level of pensioner poverty (a) before and (b) after housing costs was in (i) the UK, (ii) Scotland and (iii) England in 2004; and if he will make a statement. [222925]
Malcolm Wicks: The following table gives gross income, net income before housing costs, and net income after housing costs for pensioners, over the three years 2000–01, 2001–02 and 2002–03 combined.
Notes:
1.From Pensioners' Incomes 2002–03—the Great Britain results in table 6 of 2002–03 Pensioners' incomes were incorrect, the corrected numbers are in this table.
2.Because of small sample sizes the results are based on an average of three years of Family Resources Survey data. The data is from 2000–01, 2001–02, and 2002–03 where appropriate uprated to 2002–03 prices. Estimates of average incomes may still be vulnerable to random fluctuations in the number of very high income pensioners in each group in the FRS sample.
3.Net income is after direct taxes (including council tax) have been deducted.
4.BHC stands for Before Housing Costs, AHC for After Housing Costs.
5.Northern Ireland was included in the FRS for the first time in 2002–03. Because the table is based on three years of FRS data results are given for Great Britain rather than the UK.
Pensions
Mr. Webb: To ask the Secretary of State for Work and Pensions what the average weekly amounts of (a) basic state pension, (b) additional pension and (c) income- related additions received by (i) men and (ii) women were in each year since 1997–98. [217519]
Malcolm Wicks:
The information requested is in the table.
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Notes:
1.Income-related additions refer to the minimum income guarantee and the pension credit (payable from October 2003) and represent male and female claimants. Figures for male claimants are higher because they include a greater proportion of cases where the claim relates to a couple than the figures for female claimants. Figures for March 1998 are only available for all claimants and cannot be given in the format requested.
2.Figures for basic state pension and additional state pension are taken from a 5 per cent. sample and are therefore subject to a degree of sampling variation. The average weekly rates are based on all state pension recipients in Great Britain.
3.Basic state pension means the basic component of Category A or B state pension or Category C or D state pension.
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 and to persons aged 80 or over who satisfy the entitlement conditions for Category C or Category D Pensions.
5.Average amounts of additional state pension include the additional state pension component of Category A and B state pension and the addition to long-term incapacity benefit, graduated retirement benefit and age additions paid to people aged 80 and over.
Source:
IAD Information Centre.
Mr. Waterson: To ask the Secretary of State for Work and Pensions if he will publish an estimate of the number of pension scheme members who have lost pension through insolvent wind up since 1997 in the same format as the estimate published on 30 June 2004. [219652]
Malcolm Wicks: We shall not have full information on members' losses until their schemes are close to completing wind up. However, based on the information currently available, we estimate that some 80,000 non-pensioner members of schemes winding up since 1997 with insolvent employers could be facing losses of 20 per cent. or more of their expected pensions, 70,000 losses of 30 per cent. or more, 60,000 losses of 40 per cent. or more and 45,000 losses of 50 per cent. or more. These figures exclude those where the difference between the assets in their scheme and the level of losses is less than £10 a week. In addition, we estimate that a small number of pensioner members may be facing significant losses of 20 per cent. or more of their expected pensions.
Pete Wishart: To ask the Secretary of State for Work and Pensions what initiatives his Department has taken to encourage business investment in worker pensions; and if he will make a statement. [222922]
Malcolm Wicks: We have taken radical action to easethe burdens on business and encourage further investment in employees' pensions. This includes the measures in the 2004 Finance Act to simplify the tax system and provisions in the Pensions Act 2004 to make the running of pension schemes simpler. We have simplified the pensions tax system by changing eight schemes of taxation into one. Simplification measures in the Pensions Act 2004 will enable pension schemes to consolidate and simplify their rules with retrospective effect.
We set up the Employer Task Force to draw on business experience and innovation as a way of identifying and promoting good practice in occupational pensions. Following a recommendation in its report,
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published in December 2004, we have set up a website aimed at employers which is dedicated to offering guidelines on good practice, with case studies and examples.
We intend to take steps through our informed choice programme to raise awareness among employers of the value for recruitment and retention of employers' pension contributions.
The Government also provide generous tax relief to encourage people to save for an income in retirement, including around £5 billion a year in National Insurance relief to employers.
Ms Stuart: To ask the Secretary of State for Work and Pensions what advice was taken from (a) the Government Actuary's Department and (b) other actuaries by the then Department for Social Security (i)in advance of the introduction of contracting-out rebates for personal pensions in the 1986 Social Security Act and (ii) on the appropriateness of the level and structure of these rebates between the introduction of the 1986 legislation and the introduction of age-related rebates in 1997–98. [223111]
Malcolm Wicks:
The contracting-out rebate rates that applied to appropriate personal pensions introduced under the Social Security Act 1986, were set out in a report laid before both Houses of Parliament in March 1987 by the then Secretary of State for Social Security. As required under the legislation, a report by the Government Actuary was laid at the same time and set out the rebate rates that, under the legislation then in force, he considered to be appropriate. Before these reports were laid, a draft of the Government Actuary's report was issued for consultation. This consultation included questions on the appropriateness of the level and structure of the rebates. The actuarial profession were among those consulted and their views were taken into account as part of the consultation process.
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The Secretary of State is required to review the level of rebates at least once every five years. The same process as described above took place in 1992 to set the rebate rates from 6 April 1993 and again in 1996 to set the rates from 6 April 1997. As a result of the latest of these reviews, age-related rebates were introduced for members of appropriate personal pension schemes and members of contracted-out money purchase schemes.
Mr. Gill: To ask the Secretary of State for Work and Pensions what assessment he has made of the impact of fuel price inflation on the value of winter fuel payments to pensioners. [222194]
Malcolm Wicks: Winter fuel payments are a significant contribution towards fuel costs but are not intended to cover the full cost of fuel bills. The payment has risen from £20 in winter 1997–98 to £200 from winter 2000–01.
Hugh Bayley: To ask the Secretary of State for Work and Pensions what the rates of basic state pension payable to (a) single pensioners and (b) couples were in (i) 1996–97 and (ii) 2004–05; and what the rates would have been in 2004–05 if they had been uprated in line with prices between 1996–97 and 2004–05. [222226]
Malcolm Wicks: The information requested is in the table:
Notes:
1.Retail prices index as published by the Office for National Statistics.
2.For the years 2001–02; 2002–03; 2003–04, the basic state pension was uprated by more than the retail prices index.
3.Figures have been rounded to the nearest 5 pence at each uprating.
4.The basic state pension is an individual payment and there is no such thing as a singles" or couple's" rate. The pensioner couple rate, commonly referred to as the couples rate", is the sum total of a basic state pension and around 60 per cent. of it. The actual amount for a couple will therefore depend on the amount of the basic state pension to which the husband is entitled.
Source:
DWP Information Directorate
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