Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many individuals in receipt of (1) the pre-2016 and (2) the post-2016 state pension do not receive the full amount.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
As of the quarter ending May 23,
Source: Stat-Xplore - Table View (dwp.gov.uk) Please note, statistical disclosure control has been applied to these estimates to avoid the release of confidential data. Where relevant, totals may not sum due to the disclosure control applied.
There are a range of reasons for why an individual may not get the full rate of State Pension as the amount of State Pension paid to individuals varies depending on their National Insurance record.
In addition to the basic State Pension (pre-2016) people may also receive some earnings-related additional State Pension. For most individuals reaching State Pension age in the early years of the new State Pension (Post-2016), transitional arrangements apply. Under these arrangements, people could have a State Pension of more or less than the full rate of new State Pension depending on their National Insurance record when they reach State Pension age. The average amounts people receive are available on Stat-Xplore.
It is also possible that some of these people may qualify for income related benefits such as Pension Credit and Housing Benefit.
Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government whether they will publish a table showing the median pre-2016 and post-2016 state pension currently paid to (1) men, and (2) women.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The department currently publishes the mean weekly amount of the pre-2016 State Pension and the new State Pension paid to men and women, and this can be found in Table 11 of the latest tables which were published in August 2023 on gov.uk. There are no plans to publish the median weekly amount however we will periodically review this as the new State Pension caseload continues to grow.
Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what (1) proportion, and (2) number of (a) male, and (b) female, retirees do not receive the full pre-2016 and post-2016 state pension.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
During 2019, a new DWP computer system called “Get Your State Pension” (GYSP) came online to handle State Pension claims. The GYSP system is now handling a sizeable proportion of new claims.
The department has not yet been able to include GYSP system data in our published statistics for State Pension and the number of GYSP cases are too high to allow us to continue to publish State Pension data on Stat-Xplore. We have been providing GYSP estimates based on payment systems data and as a temporary measure, State Pension statistics are being published via data tables only. The latest release in August 2023 contains State Pensions estimates for the quarters to February 2023.
A biannual release of supplementary tables to show State Pension deferment increments and proportions of beneficiaries receiving a full amount was suspended. This release is normally based on a 5 per cent sample of the legacy computer system. Given the absence of GYSP data, the figures are affected by the same issues as described above. The latest available time period for these figures is for September 2020 and can be found in the DWP benefits statistics published in May 2021 on gov.uk.
We are developing new statistical datasets to properly represent both computer systems. Once we have quality assured the new data it will be published on Stat-Xplore, including a refresh of historical data using the best data available.
For more information on these developments, see the State Pension section of the ‘Background information note: DWP benefits statistical summary’ published on gov.uk.
Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what is the annual cost of aligning the women’s pre-2016 and post-2016 state pension with the amounts paid out to men.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The way that the National Insurance system and the State Pension systems interact means that it would not be possible align payments in the way the question suggests. The amount of State Pension paid to individuals is dependent on their National Insurance contributions. State Pensions are paid in accordance with the rules in place at the point the person reaches State Pension age. This means that outcomes are calculated on an individual basis and reflect a person’s National Insurance history throughout their careers, in line with the contributory principle.
The latest figures (August 2022) for new State Pension show that on average, women receiving the new State Pension receive £18.40 per week more than women under the pre 2016 system. It also shows that the gap between women and men has narrowed from £26.48 pw to £5.32 pw. This puts women at receiving 85% of the rate received by men under the pre 2016 system and 97% under the new State Pension. The table below shows the average amounts in payment in August 2022. The design of the new State Pension means that the gap between men and women’s outcomes is likely to continue to diminish, with outcomes being equalised in the future.
Average State Pension amounts in payment (August 2022).
| Male | Female | Total |
Pre-2016 State Pension (basic State Pension, plus Additional Pension) | £ 178.60 | £ 152.12 | £ 163.17 |
New State Pension (for those reaching State Pension age from 6.4.16 onwards) | £ 175.84 | £ 170.52 | £ 173.71 |
For people with lower amounts, Pension Credit provides a safety net for those most in need. Pension Credit provides a top up for people of State Pension age with a weekly income below £182.60 (for single people) or £278.70 (for couples). Information about Pension Credit is available from the Gov.uk website.
Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many (1) individuals, and (2) households, are eligible for the social broadband tariffs; and how many are receiving them.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The specific benefit types which provide eligibility to social broadband tariffs vary between internet service providers (ISPs).
Receipt of Universal Credit is the most common eligibility criterion across providers, therefore, at least 4.2 million households are eligible to apply for a social broadband tariff.
Since the DWP is only responsible for confirming benefit status with an ISP signed up to the automatic entitlement checker, we do not collect data on how many arrangements are now in place.
However, Ofcom reported that 136 000 households were in receipt of a social tariff as of August 2022. DWP is working with Ofcom to ensure staff across the Jobcentre Plus and DWP Service Centre network are aware of the broadband social tariffs and signpost eligible claimants to them.
Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government whether they will publish a table showing the (1) lowest, and (2) median, (a) pre-2016, and (b) post-2016, state pension for (i) men, and (ii) women.
Answered by Baroness Stedman-Scott
The median weekly amount of State Pension paid, by gender, at the end of November 2021 is shown in the below table. These show payments under the two systems: - (i) the basic State Pension (bSP) plus other components such additional State Pension (SERPS and State Second Pension) and Graduated Retirement Benefit, which operated for people who reached State Pension age before 6 April 2016; and (ii) the new State Pension (nSP) system for people reaching State Pension age from that date onwards. The lowest State Pension amounts in payments are less than £1 per week for all groups.
Please note that this does not include any payments of Pension Credit which people may be receiving in addition to their contributory State Pension.
Median weekly amount of State Pension (£) by gender, Quarter ending November 2021
Type of State Pension | Women | Men | Total |
Pre 2016 State Pension | 150.88 | 172.79 | 161.06 |
New State Pension | 175.90 | 179.41 | 177.94 |
Source: DWP, Data and Analytics, Digital Group - Work and Pensions Longitudinal Study, and other administrative data.
Notes:
Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government what assessment they have made of the effect the increase in the energy price cap will have on individuals in receipt of the state pension.
Answered by Baroness Stedman-Scott
No assessment has been made.
This country has never paid our pensioners more. This year, we will spend over £129 billion on the State Pension and benefits for pensioners in Great Britain.
The Social Security (Up-rating of Benefits) Act 2020 raised the State Pension by 2.5% from April 2021 although CPI was 0.5% and earnings were negative. From April, the full yearly amount of the basic State Pension will be around £720 more in 2022/23 than if it had been up-rated by prices since 2010. That’s a rise of over £2,300 in cash terms.
In addition, around 1.4 million eligible pensioners across Great Britain receive around £5 billion annually in Pension Credit, which tops up their retirement income and act as a passport to other financial help, such as support with housing costs, council tax, heating bills and a free TV licence for those over 75.
Cold weather payments are payable to those in receipt of Pension Credit and the warm home discount - a rebate of £140 on a customer’s energy bill - is available to those in receipt of Pension Credit Guarantee Credit. From 2022/23 the eligibility criteria for the warm home discount scheme will be extended to a greater number of Pension Credit customers and the payment increased to £150.
Customers of State Pension age are also entitled to an annual Winter Fuel payment worth up to £300. This winter we will pay over 11m pensioners a winter fuel payment at an annual cost of £2bn which is a significant contribution to winter fuel bills.
The Chancellor’s announcement on 3 February of a package of support to help households with rising energy bills, worth £9.1 billion in 2022-23, will also be available to eligible pensioners.
Further support for pensioners includes free eye tests and NHS prescriptions worth around £900m every year and free bus passes worth £1bn every year.
Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government what estimate they have made of the number of people who have claimed Statutory Sick Pay following one or more COVID-19 infections.
Answered by Baroness Stedman-Scott
Employers are not required to report payments of Statutory Sick Pay, or reasons for that payment. The data requested is therefore not available.
Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government what is the annual cost of administering the £10 Christmas bonus paid to individuals receiving the state pension and other benefits.
Answered by Baroness Stedman-Scott
The information requested is not collated centrally and could only be provided at disproportionate cost to the department.
Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government how many letters they are sending this year to the recipients of the state pension and other eligible benefits informing them of the annual £10 Christmas bonus; and what is the cost of such letters.
Answered by Baroness Stedman-Scott
The vast majority of Christmas Bonus payments are included in the regular benefit payments. DWP does not send out specific, stand-alone letters, so there is no extra cost incurred by the department.
A manual Christmas Bonus payment may be made by exception. These are cases, which for a number of reasons, have fallen out of the scans that identify eligible claimants. In this scenario, a clerical payment is made and a separate letter is sent. This stand-alone letter, is a one-off communication. Associated costs are not held, however as volumes are very low.