The information requested is not available. Projections of entitlement for pension credit under the proposed reforms to state pensions are given in the following tables.
The Government have given a commitment to re-link the uprating of the basic state pension to average earnings. Our objective, subject to affordability and the fiscal position, is to do this in 2012, but in any event by the end of the next Parliament at the latest. We will make a statement on the precise date at the beginning of the next Parliament.
The proposed reforms to the state pension system will encourage individual personal responsibility for retirement and provide a solid foundation on which people can save. These reforms will mean that those with a good history of working or caring and saving towards retirement will be taken clear of entitlement to the pension credit standard minimum guarantee, while continuing to provide a safety net for those who have been unable to build up a sufficient state or private pension.
Projections of pension credit entitlement With earnings link restored from 2012 With earnings link restored from 2015 Individuals entitled (Million) Percentage of total Individuals entitled (Million) Percentage of total 2012 5.1 44 5.1 45 2015 5.1 42 5.2 44 2020 4.7 38 4.9 40 2030 4.2 32 4.5 34 2040 3.8 27 4.0 29 2050 3.0 23 3.3 25
With earnings link restored from 2012 With earnings link restored from 2015 Households entitled (Million) Percentage of total Households entitled (Million) Percentage of total 2012 4.5 45 4.5 46 2015 4.5 45 4.6 46 2020 4.1 41 4.3 43 2030 3.9 36 4.1 37 2040 3.7 32 3.9 33 2050 3.0 28 3.3 30 Notes: 1. Projections incorporate the reforms to state pensions included in the Pensions Bill and are consistent with projections included in the Regulatory Impact Assessment to the Bill. 2. The projections do not include the impact of personal accounts. 3. Robust projections of combined entitlement to pension credit, housing benefit and council tax benefit are not available. 4. Care should be taken when interpreting these projections as they are subject to a margin of uncertainty. The projections are based on long run simulations of the incomes of individuals under a set of assumptions including life expectancy, partnership formation, earnings growth, employment rates, state and private pension accumulation. Source: DWP projections