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Employment

(GB) In 2006 over 6.3 million people aged between 50 and the State Pension Age were in employment.

The employment rate for men and women between 50 and state pension age combined was 70.9%, compared to an employment rate for all adults under state pension age of 74.4%.

The employment rate for men between the ages of 50 and 64 is 72.8%, and for women between the ages of 50 and 59 was 68.4%. (8)

In Autumn 2006, 9.8% of men aged 65 and over and 11.7% of women aged 60 and over were still in employment. (9)

Income

The basic state pension from April 2007 to April 2008 is £87.30 for a single pensioner and £139.60 for a couple (claiming on the husband’s contributions) per week. Based on a full National Insurance Contribution
record. (10)

In 2005-06, single pensioners received, on average, £205 net income per week. Pensioner couples received £397 per week on average for the same period (before housing costs). (11)

Older pensioner households have lower incomes. In 2005-06 pensioner couples where the head was aged 75 and over received £329 net income per week on average, compared with £425 net income per week for those aged under 75. (12)

21% of single male pensioners and 25% of single female pensioners, before housing costs, are in poverty; 16% of single male pensioners and 19% of single female pensioners, after housing costs, are in poverty, compared to 21% of all pensioners before housing costs, and 17% of all pensioners after housing costs.

2.2 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. (13)

In 2005-06, 64% of pensioner households depended on state benefits for at least 50% of their income. (14)

(GB) The standard guaranteed level of Pension Credit is £119.05 for single people and £181.70 for couples.

(This means that people aged 60 or over who claim their benefit entitlements should have an income of at least these amounts). (15)

The Department for Work and Pensions estimates that, in 2005-06, between 31% and 40% of pensioners in private households who were entitled to Pension Credit, did not claim. (16)

The Department for Work and Pensions estimates that, in 2004-05, between 13% and 19% of people in private households who were entitled to Housing Benefit, and between 42% and 47% entitled to Council Tax Benefit, did not claim.

Estimates of unclaimed benefits should be treated with caution. (17)

In 2004/05, the number of pensioner households receiving Pension Credit was over 2.7 million3.3 million individuals). (18)

Around 3.75 million households in the year 2004/05 were estimated to be eligible for Pension Credit. (19)

Sources of data used

(8) Older workers: statistical information booklet, Spring 2006, 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).www.agepositive.gov.uk
(9) Economic and Labour Market Review, 1 (3), Mar 2007, online table 2.02 (Employment by age).
www.statistics.gov.uk/elmr/tables
(10) A to Z – State Pension, The Pension Service.
www.thepensionservice.gov.uk/atoz/atozdetailed/
retirement.asp (09/04/07)
(11) Pensioners’ incomes series 2005/6, DWP © Crown Copyright 2007, section 2, table 2.1 (The average incomes of pensioner units, 1994/5-2005/6).
www.dwp.gov.uk/asd/asd6/pensioners_income.asp
(12) Ibid, section 2, table 2.3 (The average incomes of pensioner couples by age, 1994/5-2005/6).
(13) Households below average income: an analysis of the income distribution 1994/5 – 2005/06,
DWP © Crown Copyright 2006, table 6.5 (Risk of falling into low-income groups of pensioners…);
table 6 (Number of pensioners below thresholds…).
www.dwp.gov.uk/asd/hbai/hbai2006/contents.asp
(14) Pensioners’ incomes series, op cit, section 3, table 3.2 (The proportion of pensioner units with
less than 50% of income from state benefits, 1994/5-2005/6).
(15) What is Pension Credit?
www.thepensionservice.gov.uk/pensioncredit/home.asp (24/05/07)
(16) Pension Credit estimates of take-up in 2005-06, DWP © Crown Copyright 2007, table 1.1
(Caseload take-up of Pension Credit)
www.dwp.gov.uk/asd/irb.asp
(17) Income related benefits – estimates of take-up in 2004/2005, DWP © Crown Copyright 2006,
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).
www.dwp.gov.uk/asd/income_analysis/final0405/pdf
(18) Annual Report and Accounts 2004/05, The Pension Service © Crown Copyright 2005,
HC342.
www.thepensionservice.gov.uk/pdf/annualreport/
annualreportpart10405.pdf
(19) The new Pension Credit: a review of the campaign, DWP © Crown Copyright May 2004, section 1.6.

Data from Government sources reproduced under the terms of the Click-Use licence.