(GB) In 2005 over 6.2 million people aged between 50 and the State Pension Age were in employment. The employment rate for men between the ages of 50 and 64 is 72.4%, and for women between the ages of 50 and 59 is 68.4%. This compares to an employment rate for all people of working age of 74.6%. (8)

In Spring 2005, 8.9% of men aged 65 and over and 10.4% of women aged 60 and over were still in employment. (9)

Income

The basic pension from April 2006 to April 2007 is £84.25 for a single pensioner and £134.75 for a couple (claiming on the husband’s contributions)
per week.

In 2004-05, single pensioners received, on average, £195 net income per week. Pensioner couples received £365 per week on average for the same period. (10)

Older pensioner households have lower incomes. In 2004-05 pensioner couples where the man was aged 75 and over received £324 net income per week on average, compared with £389 net income per week for those aged under 75. (11)

16% of single older men and 22% of single older women, before housing costs, are in
poverty; 13% of single older men and 17% of single older women, after housing costs, are in poverty, compared to 19% of all pensioners before housing costs, and 17% of all pensioners after housing costs.

2 million pensioners, before housing costs, and 1.8 million after housing costs are in poverty.

Poverty is defined as living in a household where the income is less than 60 per cent of
the median income of the population as a whole. (12)

In 2004-05, 68% of pensioner households depended on state benefits for at least 50% of
their income. (13)

The Department for Work and Pensions estimates that, in 2002-04, between 34% and 42% of pensioners who were entitled to Pension Credit, between 12% and 18% who were entitled to Housing Benefit, and between 41% and 47% entitled to Council Tax Benefit, did not claim.

Estimates relate to the first six months of Pension Credit and have been annualised; data should therefore be treated with caution. (14)

In September 2005, the number of pensioner households receiving Pension Credit was 2.71 million (3.29 million individuals). (15)

Around 3.75 million households in the year 2004/05 were estimated to be eligible for
Pension Credit. (16)

Sources of data used

(8) Older workers: statistical information booklet, Spring 2005, Department for Work and Pensions (DWP), table 2 (Characteristics of people in the GB labour market); table 2a (Characteristics of men and women in the GB labour market).
(9) Labour Market Trends, 114 (3), Mar 2006, table B2 (Employment rates by age).
(10) Pensioners’ incomes series 2004/5, DWP Pensions Analysis Directorate, 2006, section
table 2.1 (The average incomes of pensioner units, 1994/5-2004/5). Published on the internet at http://www.dwp.gov.uk/asd/asd6/pensioners_income.asp.
(11) Ibid, section 2, table 2.3 (The average incomes of pensioner couples by age, 1994/5-2004/5).
(12) Households below average income: an analysis of the income distribution 1994/5-2004/05, DWP, 2006, table 6.5 (Risk of falling into low-income groups of pensioners…); table 6 (Number of pensioners below thresholds…).
(13) Pensioners’ incomes series, op cit, section 3, table 3.2 (The proportion of pensioner units with less than 50% of income from state benefits, 1994/5-2004/5).
(14) Income related benefits – estimates of takeup in 2003/2004, DWP, 2006, table 2.1 (Caseload take-up of Pension Credit); table 3.1 (Caseload take-up of Housing Benefit by family type); table 4.1 (Caseload take-up of Council Tax Benefit by family type).
(15) House of Commons Hansard, Written Answers, 9 January 2006, col 94W.
(16) The new Pension Credit: a review of the campaign, May 2004, section 1.6. DWP.

www.ageconcern.org.uk