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Dept for Work and Pensions

Answer

Mr. Webb: To ask the Secretary of State for Work and Pensions what estimate he has made of the effect on the number of pensioners who will be in receipt of pension credit in 2009-10 of (a) a continuation of current uprating policy, (b) linking the basic state pension and the savings credit threshold to earnings and (c) linking the basic state pension to earnings and the savings credit threshold to prices from 2006-07 onwards. [223979] Malcolm Wicks: [holding answer 4 April 2005]: The number of pensioner benefit units estimated to be in receipt of pension credit if the current uprating rules are continued until the financial year 2009-10 is 3,350,000. Under option (b) where the basic state pension is uprated in line with earnings from 2006-07 onwards and the savings credit threshold is increased in line with prices as now, 150,000 fewer benefit units would be in receipt of pension credit by 2009-10. Under option (c) where the savings credit threshold is increased in line with the increase in the basic state pension from 2006-07 about 250,000 fewer benefit units would be in receipt by 2009-10. Notes: 1. The figures are rounded to the nearest 50,000 to account for the large potential margin for error in the estimate. 2. Overall pensioner incomes are assumed to rise in line with average earnings. 3. The projection of the recipient population under continuation of current policy is derived from the Public Service Agreement target for recipients at the end of 2007-08, and the change in eligibility implied purely by assumed changes in incomes, entitlements and population between then and 2009-10. 4. The projections do not prejudge future operational and policy decisions. Source: Figures are calculated using the Department's policy simulation model and the family resources survey 2002-03 projected forward to 2009-10

Secondary information

Type

Written question

Reference

432 c1693-4W;432 c1689W; 223979

Session

2004-05

Subjects

Pension credit Pensioners Pensions Recipients Take-up

Contains statistics

Yes

Link

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