Supplementary evidence by the Department
for Work and Pensions (CTB 21)
1. Please provide an estimate of the number
of people who do not pay income tax, as their incomes are too
low but are liable for full council tax.
There are 700,000* adults who do not pay income
tax but are liable for full council tax.
2. Please provide an estimate of the number
of people who are not eligible for CTB but are below the poverty
line (and define the definition). In addition, please include
an estimate of the number of children who live in households that
are not eligible for CTB but are below the poverty line.
There are 1.4 million* adults who are below
the poverty line and are liable for full council tax.
There are around 600,000* children living in
families that are liable for full council tax and living below
the poverty line. (A household living below the poverty line is
defined as having income below 60% of median income.)
*Note
(a) These figures have been derived using
the Policy Simulation Model (PSM) which uses data from the Family
Resources Survey (FRS).
(b) The PSM models the calculation of individual
taxes and income related benefit entitlement, by deriving detailed
microdata from the latest available Family Resources Survey (FRS).
(c) The PSM models the current policy year
(07/08) using the latest FRS data (2005-06), by up-rating the
FRS to represent the appropriate policy year.
(d) The analysis provided assumes full take-up
of income related benefits in the current policy year (2007-08).
3. Please provide an estimate of the number
of pensioners that are not eligible for Pension Credit but who
are eligible for CTB (based on national data). Related to this...
please provide the estimated number of callers per year to the
Pension Service that call to claim Pension Credit but are assessed
as not eligible. Any data on estimates of the type of real amounts
of CTB that these people could potentially claim would be useful
additional information (people who are not eligible for Pension
Credit but eligible for CTB).
(a) Estimates of pensioners not eligible
for Pension Credit but eligible for CTB, and amount of CTB entitlement
Figure 1
| Number of pensioners who are not entitled to Pension Credit but are entitled to CTB.
| 1,000,000 |
| Number in receipt of CTB | 200,000
|
| Number not in receipt of CTB | 800,000
|
| Mean amount those in receipt of CTB are entitled to
| £7.46 |
| Mean amount those not in receipt of CTB could be entitled to
| £6.82 |
Note: Figures are taken from raw data and are subject to
some bias. It has not been possible to produce robust figures
in the time available and therefore the figures are indicative,
and are not to be interpreted or treated as published figures.
Calculations have been rounded to the nearest 100,000.
(b) The estimated annual number of callers to The Pension
Service who call to claim Pension Credit but are assessed as not
eligible
There are two ways in which people applying for Pension Credit
could be classed as "ineligible". The Pension Credit
processing system used by agents taking telephone applications
has an `entitlement monitor', which performs a running calculation
of entitlement during the call based on the information the customer
has given. If the information provided indicates that the customer
is not entitled to Pension Credit, the agent tells the customer
and gives them the opportunity to discontinue their application.
Customers who make a full application for Pension Credit
(either by phone, or by making a paper claim) will have their
application assessed and at this stage the decision is made about
whether or not they are entitled to Pension Credit.
Figures for both these scenarios are given below. The first
table relates to the entitlement monitor, and therefore shows
telephone applications only. The second table shows decisions
made on all applications, whether made by phone or in writing.
Figure 2
Telephone applications for Pension Credit where the "entitlement
monitor" has indicated the customer is not entitled to Pension
Credit and they have chosen not to continue with their application
(2006-07).
| Total number of telephone applications |
1,038,275 |
| Number of applications discontinued as a result of the entitlement monitor
| 41,185 (4%) |
Figure 3
Pension Credit applications made in full (both phone and
paper applications) in 2006-07.
| Total number of Pension Credit applications processed
| 356,006 |
| Number not entitled | 77,112 (22%)
|
| 
