30-06-03
Thousands of Edinburgh pensioners have incomes below basic level – Barrett
John Barrett, Scottish Liberal Democrat MP for Edinburgh West, today released alarming new figures which showed that the incomes of thousands of pensioners in Edinburgh are falling below the minimum level set by the Government.
Answers to parliamentary questions tabled by Mr Barrett to the Department of Work & Pensions show that 11,100 pensioners in Edinburgh are in receipt of the Government's Minimum Income Guarantee (MIG). 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.
However the Government estimates that the take-up rate of the MIG could be as low as 68% with the remaining 32% of pensioners eligible but not claiming. This corresponds to a figure of 5,200 pensioners in Edinburgh who are below the basic income level and not receiving the MIG.
Worse still, the numbers actually claiming the MIG are actually decreasing.
The figures for Scotland are even more astonishing with an estimated 87,500 pensioners north of the border not claiming the money to which they are entitled and money which the Government says they need to have a basic form of income.
In a statement, John Barrett said:
"These figures should worry everyone concerned about pensioner poverty, not just in Edinburgh, but throughout Scotland.
"The fact number claiming this most basic of Government financial support, which the Department of Work & Pensions often highlight as one of their great successes is simply not acceptable.
"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 even 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."
ENDS
Notes to Editors
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 |
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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.
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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.