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Provide a breakdown of the 1400 pensioner aged 65 plus households which claimed the GST Food Costs Bonus in 2010

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1240/5(5993)

WRITTEN QUESTION TO THE MINISTER FOR SOCIAL SECURITY BY SENATOR F. du H. LE GRESLEY

ANSWER TO BE TABLED ON TUESDAY 15th FEBRUARY 2011

Question

Would the Minister provide a breakdown of the 1400 pensioner aged 65 plus households which claimed the GST Food Costs Bonus in 2010 by the following household type:-

  1. pensioners who live alone
  2. couples-one pensioner
  3. couples- both pensioners?

Would the Minister provide details of actual expenditure in 2010 against budget for the GST Food Costs Bonus and for Income Support Special Payments-Cold Weather Payments and the budget figures for each benefit for 2011?

Answer

The  figure  of  1,400  quoted  by  Senator  Le  Gresley  comes  from  an  initial  estimate  of approximately 1,050 to 1,400 pensioner households. After detailed analysis the actual number is 979.

The table below provides a breakdown of 2010 Food Costs Bonus claims by pensioners in household type:

 

Household Type

Number of claims

Pensioners who live alone

547

Couples - one pensioner

68

Couples - both pensioner

364

Total

979

In respect of Food Costs Bonus and Income Support Cold Weather payments, the budget and spend are as follows:

2010

Budget  Actual Spend (£)  (£)

GST Food Costs Bonus  800,000  205,784 Income Support Cold Weather Payments  750,400  628,669

Please note that the spend figures quoted for 2010 are subject to audit.

2011

Budget (£)

Food Costs Bonus  385,633 Income Support Cold Weather Payments  727,750

Removal  of  the  Food  Costs  Bonus  was  submitted  as  a  savings  proposal  as  part  of  the Comprehensive Spending Review process for 2011. This proposal was subsequently amended twice resulting in the retention of the bonus with a revised budget reflecting current spend. However, as a result of recent close working with the Income Tax Department and analysis of the Income Distribution Survey data, the  number of  over  65's  claiming the  Food  Costs Bonus currently is approximately one third of the potential claimants in this age group. The current budget reflects the possibility of some increased take up with an additional £75,000 as a result of the increase in GST from June. If all eligible households did claim the current budget would be insufficient.