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Administration (1)
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Pursuant to his Answer of 18th November, Official Report, column 451w, for the years (a) 2000-1 and (b) 2010-11, what is his estimate (i) of the number of additional pensioners eligible to claim income support as a result of the retirement pension not being increased annually in accordance with earnings,...
Pursuant to his Answer of 18th November, Official Report, column 451w, for the years (a) 2000-1 and (b) 2010-11, what is his estimate (i) of the number of additional pensioners eligible to claim income support as a result of the retirement pension not being increased annually in accordance with earnings,...
Asked by
Baroness Corston
(Labour)
Answered by
Oliver Heald
(Conservative)
Answering body
Department of Social Security
Type
Written questions
Status
Answered
For answer on
18 December 1996
Answered on
18 December 1996
Ms Corston: To ask the Secretary of State for Social Security, pursuant to his answer of 18 November, Official Report, column 451,
for the years (a) 2000-1 and (b) 2010-11, what is his estimate (i) of the number of additional pensioners eligible to claim income
support as a result of the retirement pension not being increased annually in accordance with earnings, (ii) of the additional cost,
at 1995-96 prices and (iii) of the additional cost of administration, assuming that the difference between the per capita costs of
administering the basic retirement pension and income support in 1995-96 were applied to subsequent years, that the basic retirement
pension continued to be price-indexed and that the number and amount of other sources of income remained as now. [8248]
Mr. Heald: Estimated numbers of additional pensioners in receipt of income support and the additional cost to income support as a
result of the basic retirement pension not being uprated in accordance with earnings are given in the table. The table also contains
estimates as a result of the basic retirement pension not being increased in accordance with the higher of prices and average
earnings. Estimates have been made using Pensim, a dynamic simulation model that projects pensioners' incomes into the next century.
Pensim estimates are based on a number of economic and behavioral assumptions, and in particular that average earnings increase by
1.5 per cent. per year above prices. Due to the reliance on assumptions and the time period covered, caseload estimates have been
rounded to the nearest 100,000 and cost estimates to the nearest £100 million, and should be treated with caution. Further details
of the methodology and assumptions used by Pensim are outlined in GES working paper no. 129 "PENSIM: A Dynamic Simulation Model of
Pensioner Incomes". Copies are available in the Library.
Number of additional pensioners in receipt of income support, as a result of the basic retirement pension not being increased
annually in accordance with earnings since 1980
_________________________________________________________________________________________________.
2000-01 2010-11
Additional pensioners in Additional cost to IS £ Additional pensioners in Additional cost to IS £
receipt of IS million receipt of IS million
Basic retirement pension 900,000 600 600,000 400
increasing in line with
average earnings
Basic retirement pension 900,000 600 600,000 400
increasing in line with
higher of average earnings
and prices
Estimated administration -- 32 -- 21
cost to nearest £1 million
_________________________________________________________________________________________________.
1. Pensioners are defined as those single aged at state pension age or above, or couples in which the husband is aged at state
pension age or above.
2. Caseload figures have been rounded to the nearest 100,000. Cost figures have been rounded to the nearest £100 million.
3. Costs are at 1995-96 prices.
Subjects
Administration; Costs; Income support; Pensioners; Social security benefits; State retirement pensions; Uprating; Average earnings
Date
18 December 1996
Reference
8248; 287 c754W
House
House of Commons