14-01-04

Pension Credit take-up in Edinburgh barely 40% – Barrett

Barely 40% of eligible pensioner households in Edinburgh are receiving the new Pension Credit, according to shocking statistics published today by Edinburgh West MP, John Barrett.

Latest Government figures, combined with answers to Mr Barrett's parliamentary questions, have shown that the Edinburgh take up of the Government's new flagship benefit for pensioners stands at only 41%.  The figure also compares poorly with the overall Scottish percentage of 56%.

In a statement, John Barrett said:

"Despite all the Government promotions and advertising, the take-up of pension credit in Edinburgh and throughout Scotland is still atrocious.  These figures show that some 20,000 pensioners in the Capital are still not getting the financial help they deserve.

"Many of the pensioners who are receiving pension credit were getting the old Minimum Income Guarantee and have simply been switched over. That means, the actual take-up of the credit by new pensioners will be even lower.

"The Department for Work & Pensions has to holds it hand up and admit their complex means testing of pensioners has failed.  It is time the Government took pensioner poverty more seriously by channelling money into a substantial increase in the state pension.  That way, all pensioners can get a fairer deal from the state in their retirement."

ENDS

Notes to Editors

(1) An accurate number of pensioner households for Scotland is available by looking at those households in receipt of winter fuel payments.  Latest figures were made available by the Department for Work & Pensions in a parliamentary answer to John Barrett:

"John Barrett: To ask the Secretary of State for Work and Pensions how many people in Scotland received the winter fuel allowance for the 2002-03 winter, broken down by (a) local authority and (b) parliamentary constituency; and what percentage these figures represent of the total numbers eligible for the allowance in each local authority and constituency.
 
Maria Eagle: Around one million people in Scotland received a winter fuel payment for the winter of 2002-03. Information broken down by constituency and local authority is not yet available but figures for 2001-02 are given in the tables."

Winter fuel payments for Scotland by parliamentary constituency winter 2001-02,  Thousands   
All 994.4
Edinburgh Central 12.0
Edinburgh East and Musselburgh 15.8
Edinburgh North and Leith 12.1
Edinburgh Pentlands 14.2
Edinburgh South 14.2
Edinburgh West 17.5
EDINBURGH TOTAL 85.8

(2) The Government disclosed the number of pensioner households that would be eligible for the pension credit in Scotland in a parliamentary answer to Mr Barrett on 16th June 2003
 
"John Barrett: To ask the Secretary of State for Work and Pensions how many pensioners will benefit from the pension credit in Scotland, broken down by (a) local authority and (b) parliamentary constituency.
Maria Eagle: The information is not available in the format requested however 400,000 people in Scotland stand to benefit from Pension Credit."

(3) 400,000 as a percentage of 994,000 is approximately 40%.
Therefore, 40% of pensioner households in Edinburgh should also be eligible for pension credit. 

40% x 85,800 = 34,430

(4) According to the DWP Pension Credit Progress Report - January 2004, the number of pensioner households actually receiving pension credit is as follows:

Pension Credit for Scotland by parliamentary constituency December 2003 Figure 
All 217,000
Edinburgh Central 2,339
Edinburgh East and Musselburgh 3,250
Edinburgh North and Leith 2,596
Edinburgh Pentlands 1,675
Edinburgh South 2,340
Edinburgh West 2,007
EDINBURGH TOTAL 14,207

Source - Department of Work & Pensions Written Statement 12th January 2004

Calculation of take-up rate of pension credit in Edinburgh:

14,207 x 100 / 34,430 = 41.3%

Similarly for Scotland

223,000 x 100 / 397,760 = 56.1%(5)

Calculation of number of pensioner who are eligible for but not receiving pension credit = 34,430 - 14,207 = 20,223