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Dept of Social Security

Answer

Mr. Clarke: To ask the Secretary of State for Social Security if he will estimate the cost in 1996-97 of raising the incomes of all pensioner units to at least the level of income support plus £5 for a single pensioner and £8 for pensioner couples; and what would be the annual cost of maintaining pensioners incomes at that level in real terms for each year until 2001-02, assuming payments were made through the income support system and assuming the most recent levels of non-take-ups. [6702] Mr. Mitchell: The estimated cost in 1996-97 of raising the incomes of all pensioner units to at least the level of income support plus £5 for a single pensioner and £8 for pensioner couples is £800 million assuming the most recent levels of non-take-up. It is not possible to give estimates of this cost to the year 2001-02 as reliable forecasts of future levels of pensioners' incomes are not available for this period. Notes: 1. It has been assumed that the pensioner supplement would be paid as an increase in income support levels. Maintaining the current income-related benefit system involves aligning the thresholds and income brought to account in the other income-related benefits. As a result, there are increased costs in the housing benefit and council tax benefit included in the total. 2. It has been assumed that the income of pensioners is the current income for assessment purposes in income support. 3. No account has been taken of any additional costs that would arise from the abolition of the existing capital limits in the income-related benefits which would be necessary to ensure that those above these limits also received any required increase in pension income. 4. The costs have been; estimated using data drawn from the May 1994 income support quarterly statistical inquiry and the 1991, 1992 and 1993 family expenditure surveys, uprated to 1996-97 prices and benefits levels and rounded to £50 million.

Secondary information

Type

Written question

Reference

6702; 269 c165-6W

Session

1995-96

Subjects

Expenditure Personal income Social security benefits State retirement pensions Uprating Levels

Contains statistics

Yes