Written question asked by Nick Ainger (Labour), in the House of Commons. It was due for an answer on Thursday, 17 October 1996. It was answered by Angela Knight (Conservative) on Thursday, 17 October 1996 on behalf of the Treasury.

Treasury

Question: If pensioner households mainly dependent on state benefits are included in the calculation of weights which form the basis of the retail price index.

Answer: Mr. Ainger: To ask the Chancellor of the Exchequer if pensioner households mainly dependent on state benefits are included in the calculation of weights which form the basis of the retail prices index. [41011] Mrs. Angela Knight: Pensioner households mainly dependent on state benefits are not included in the calculation of the weights used in the retail prices index. The retail prices index excludes pensioners deriving at least three-quarters of their income from state pensions and benefits. Pensioners are excluded as their spending patterns differ significantly from those of a typical household. However, the Office for National Statistics does compile pensioner price indices to cover these households on a quarterly basis. Details of the weights used are published each year in the retail prices index "Business Monitor", MM23. An article explaining how the weights were calculated for 1996 was published in the February 1996 issue which is available from the House of Commons Library.

Secondary information