3-07-03

Barrett calls for Commons debate on pensioner poverty

John Barrett, Scottish Liberal Democrat MP for Edinburgh West, today used Business Questions in the House of Commons to call for a parliamentary debate on pensioner poverty following the release of figures showing  the incomes of thousands of pensioners in Edinburgh falling below the minimum level set by the Government.

Three days ago, Mr Barrett released answers to parliamentary questions which showed that 11,100 pensioners in Edinburgh were in receipt of the Government's Minimum Income Guarantee (MIG). 

However, this figure represented only 68% of people who are eligible for the benefit, leaving 5,200 in Edinburgh below the basic income level and not receiving the MIG.

The corresponding figures for Scotland showed an estimated 87,500 pensioners not claiming the money to which they are entitled and money which the Department for Work & Pensions says they need to have a basic form of income.

In a statement, John Barrett said:

"With only a few weeks left until the parliamentary summer recess, it is crucial that the House of Commons gets the opportunity to discuss how take up of this important benefit can be improved. 

"From these figures, it is clear that thousands of pensioners in Edinburgh and hundreds of thousands in Scotland as a whole have an income which is less than even the Government think is required for a basic standard of living. Clearly the Government have some way to go if they are going to achieve their aim of lifting all pensioners out of poverty. 

"The introduction of the new pension credit in the autumn, which will replace the minimum income guarantee for the poorest pensioners, offers the Department for Work & Pensions an excellent opportunity to increase the take-up rate.  They must take every step possible between now and October, when the credit will start, to advertise and promote the change and ensure that by this time next year, these figures are dramatically reduced.  That is why we need a parliamentary debate before the summer recess because when the House returns in September, there will only be a few weeks until the new credit begins."

ENDS


Notes to Editors

1. The relevant answers to John Barrett's parliamentary questions to the Department of Work & Pensions are given as follows:

John Barrett: To ask the Secretary of State for Work & Pensions, how many people in Scotland are in receipt of the minimum income guarantee, broken down by (a) local authority and (b) parliamentary constituency

Maria Eagle: The information is as follows

Local Authority Minimum Income Guarantee Claimants
(as at November 2002)
SCOTLAND TOTAL 186,100

Edinburgh, City of

 

11,100

 

Parliamentary Constituency Minimum Income Guarantee Claimants
(as at November 2002)
SCOTLAND TOTAL 186,100
Edinburgh Central 1,700
Edinburgh East & Musselburgh 2,800
Edinburgh North & Leith 2,100
Edinburgh Pentlands 1,700
Edinburgh South 2,200
Edinburgh West 1,400


2. The MIG was introduced to bring each pensioner incomes up to the level which the Government believed was the lowest at which a pensioner could be expected to live, currently £102.10 a week.

3. The National Statistics Report "Income Related Benefits - Estimates of Take-up 2000/0, published in 2003 provides the most up to date figures for the take up of Government benefits.  According to the report, the take up of the Minimum Income Guarantee by caseload is 68-76%.  The entire report can be found at
www.dwp.gov.uk/asd/income_analysis/tu0001.pdf

4. The Government will replace the minimum income guarantee with a new guarantee credit, which forms part of the pension credit being phased in from October 2003.  All pensioners currently in receipt of the MIG will automatically receive the guarantee credit part of the pension credit.  However, other pensioners will still have to apply to the DWP to claim the credit.  More information on the pension credit can be found at www.dwp.gov.uk/gbi/5a8cc08.htm.