Skip to main content

Pensions

Volume 205: debated on Monday 16 March 1992

The text on this page has been created from Hansard archive content, it may contain typographical errors.

To ask the Secretary of State for Social Security if will update the figures provided for the hon. Member for Jarrow (Mr. Dixon) on 7 February 1985, Official Report, columns 685–86, on the level of state old age pensions as a percentage of current gross average earnings.

There are no meaningful, updated comparable statistics available on average earnings in the member states of the European Community, and I refer the hon. Member to my reply to him on 14 January at column 552.

To ask the Secretary of State for Social Security if he will update his answers to the hon. Member for Brighton, Kemptown (Mr. Bowden) of 27 March 1990, Official Report, column 161–62, using the 1989 family expenditure survey on pensioner incomes.

The information requested for 1989 is not yet available. In 1988, 16 per cent. of pensioner units received all their income from state benefits compared with 23 per cent. in 1979. The original tables have been updated (a) to include details of the information held using the 1988 family expenditure survey and (b) with medians rather than means used to calculate the average incomes in each quintile and decile. The updated tables are as follows:

Table 1: Real percentage changes in pensioners' net income by quintile.
QuintileLowestQ2Q3Q4HighestAll
1979–80422202
1980–81566435
1981–823321-3-1

Quintile

Lowest

Q2

Q3

Q4

Highest

All

1982–8356791211
1983–8421-2-2-1-1
1984–85-101042
1985–86223685
1986–87-212447
1987–88-301362
Overall142424303734

Table 2: Cash changes in real equivalised income at each decile group of pensioner tax units. Change since previous year in £ per week in 1988 prices. Median values used for deciles, means for total values.

1979 to 1980

1980 to 1981

1981 to 1982

1982 to 1983

1983 to 1984

1984 to 1985

Lowest Q11·104·10-0·404·400·90-0·60
Q20·504·800·904·501·10-1·10
Q31·005·301·005·101·50-1·10
Q40·805·001·705·800·80-0·50
Q50·904·902·006·300·400·60
Q60·905·002·206·800·50-0·20

Q7

0·805·301·807·800·70-0·40
Q8-1·007·300·8010·80-1·002·50
Q9-0·9010·20-3·0016·10-4·507·00
Q1012·004·40-10·4029·60-3·6011·90
Total1·406·60-1·4011·600·100·30
Change since 19791·408·006·6018·2018·3018·60

1985 to 1986

1986 to 1987

1987 to 1988

Lowest Q11·90-1·90-0·50
Q22·200·00-1·50
Q32·500·60-1·60
Q43·400·80-1·00
Q52·802·10-1·00
Q63-403·10-0·30
Q73·704·701·40
Q86·504·705·70
Q97·006·1013·00
Q1015·3022·9020·10
Total6·406·801·40
Change since 197925·0031·8033·10

Table 2: Percentage changes in real equivalised income of each decile group of pensioner tax units. Percentage change since previous year. Median values used for deciles, means for total values.

1979 to 1980

1980 to 1981

1981 to 1982

1982 to 1983

1983 to 1984

1984 to 1985

Lowest Q126-161-1
Q217161-1
Q317162-1
Q416261-1
Q5162701
Q6152700
Q715271-1
Q8-1619-12
Q9-17-211-34
Q1062-514-25
Total16-11000
Change since 19791761711717

1985 to 1986

1986 to 1987

1987 to 1988

Lowest Q13-3-1
Q230-2
Q331-2
Q441-1
Q532-1
Q6330
Q7341
Q8534
Q9447
Q10697
Total551
Change since 1979233031

To ask the Secretary of State for Social Security how many additional pensioners will be brought into means testing by becoming eligible for income support as a result of the proposed addition to the income support pensioner premium.

It is estimated that up to half a million pensioners on low incomes will become newly entitled to claim income-related benefits from October. Around three quarters of these will qualify for income support, and the remainder for housing benefit and or community charge benefit.

To ask the Secretary of State for Social Security what proportion of the real-terms increase in benefit expenditure on the elderly is attributable to the commencement and growth of spending on additional pensions with contributory benefit between 1978–79 and the latest available date.

Benefit expenditure on the elderly rose by 32·6 per cent, in real terms between 1978–79 and 1991–92. Additional pensions account for4·4 percent, real terms growth between those years, and all other benefits account for 28·2 per cent, real terms growth.

To ask the Secretary of State for Social Security if he will update his answer to the hon. Member for Brighton, Kemptown (Mr. Bowden) of 3 July 1990, Official Report, columns 513–16 concerning the income of retired households, using the 1989 family expenditure survey.

To ask the Secretary of State for Social Security if he will update his answer to the right hon. Member for Chesham and Amersham (Sir I. Gilmour) of 2 December 1991, Official Report, column 51, on pensioner incomes, using the information in the 1989 family expenditure survey.

To ask the Secretary of State for Social Security what proportion and number of pensioners will benefit from the addition to the income support pensioner premium.

It is estimated that some 5 million people aged over 60 will stand to gain from the increases announced by my right hon. Friend the Chancellor of the Exchequer on 10 March. About half these will gain from income support and about half from housing benefit and community charge benefit. Nearly half of all those over pension age will be entitled to extra benefit as a result of the increase.

To ask the Secretary of State for Social Security if he will update his answer to the hon. Member for Brighton, Kemptown (Mr. Bowden) of 18 October 1991, Official Report, columns 273–74, regarding pensioners' living standards, to take account of the 1989 family expenditure survey results.