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Dept for Work and Pensions

Answer

Mr. Webb: To ask the Secretary of State for Work and Pensions pursuant to the answer of 3 March 2005, Official Report, column 1397W, on pension credit, if he will estimate the savings credit take-up rate for (a) those who are entitled to both guarantee credit and savings credit and (b) those who are entitled only to savings credit. [221555] Malcolm Wicks: National statistics on take-up of major DWP benefits are published annually by the Department in "Income Related Benefits: Estimates of Take-up". These are based on the Family Resources Survey (FRS) for the relevant year and take account of both entitled non-recipients and non-entitled recipients. However, they are published significantly in arrears and the 2004-05 statistics will not be available for some time. Interim figures can be derived by comparing administrative claimant count with entitlement figures derived from the Policy Simulation Model, based on the 2002-03 Family Resources Survey. However administrative and survey figures are not directly comparable and any take-up figure derived this way is indicative only. Guarantee element take-up estimates thus formed can be roughly validated by comparison with existing minimum income guarantee entitlement and take-up estimates. However, in the case of savings credit this is not possible. It is thought that take-up for those on both guarantee and savings credit is to the order of 80 per cent. Similarly it is thought that around half of individuals entitled to savings credit only are taking up their entitlement, although there is no way of validating these results. The savings element of pension credit is a relatively new entitlement, introduced in October 2003. Weekly entitlement can be up to £15.51 for single pensioners and £20.22 for couples. It is already in payment to over half a million households. The average award was £9.81 as at November 2004, the latest date for which this figure is available.

Secondary information

Type

Written question

Reference

432 c1384-5W;432 c1380-1W; 221555

Session

2004-05

Subjects

Benefits rules Eligibility Pension credit Pensioners Personal savings Pensions Take-up

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk