Skip to main content

Social Security Benefits: Pensioners

Volume 477: debated on Thursday 12 June 2008

To ask the Secretary of State for Work and Pensions what recent estimate he has made of the (a) number and (b) proportion of pensioners who will be entitled to (i) means-tested benefits and (ii) pension credits in (A) 2010, (B) 2020, (C) 2030, (D) 2040 and (E) 2050; and if he will make a statement. (209394)

[holding answer 6 June 2008]: The latest projections of the proportion of pensioners entitled to means-tested benefits, including pension credit, are published in table three and table one respectively of the factsheet “Proportions of entitlement to Income Related Benefits to 2050”, placed in the Library on 2 June 2008.

The information requested is given in the following table.

Projected number and proportion of pensioner households entitled to income-related benefits in selected years

Any income related benefit

Pension credit

Number (million)

Proportion (percentage)

Number (million)

Proportion (percentage)

2010

6.0

55

4.5

45

2020

5.5

55

4.0

40

2030

5.5

50

4.0

35

2040

5.5

45

3.5

30

2050

5.0

40

3.5

30

Notes:

1. All estimates are given on a United Kingdom basis, consistent with the Pensions Bill regulatory impact assessment.

2. Estimates are given for financial years. For example, estimates for 2010 relate to the financial year 2010-11.

3. Estimates account for the state pension reforms in the Pensions Act 2007.

4. Estimates do not take account of the effect of the private pension reforms in the current Pensions Bill, such as personal accounts and auto-enrolment.

5. Pensioners are defined as single people or couples containing at least one person of qualifying age for pension credit, including those in residential care.

6. Estimates account for equalisation of state pension age between 2010 and 2020. They also account for the increases in state pension age between 2024 and 2046. The estimates assume that the minimum age at which people can claim pension credit rises in line with (women’s) state pension age.

7. Entitlement to any income related benefit is defined as entitlement to at least one of pension credit, housing benefit or council tax benefit.

8. Projections are designed to illustrate the impact of benefit policy under a set of reasonable assumptions. They are sensitive to modelling assumptions and to projected changes in the distribution of pensioner incomes. Estimated numbers and proportions have been rounded to the nearest 0.5 million and 5 per cent. respectively.

9. Projections for proportions entitled to individual benefits have been calibrated to National Statistics estimates for past years, which adjust Family Resources Survey data to take account of possible biases in reporting. The National Statistics are published as a range; the projections have been calibrated to the mid-point of that range.

10. There are no corresponding National Statistics estimates to calibrate projected proportions entitled to any income related benefit, so these estimates are subject to greater uncertainty.

Source:

DWP Projections