Northern Ireland

Older people in low income

Key points

  • Over the period 2003/04 to 2005/06, 20% of pensioners in Northern Ireland were living in low income households, equivalent to some 50,000 people.
  • Northern Ireland's 20% rate is similar to the GB average.  It is also similar to the rate for the Northern Ireland population as a whole.
  • Similar proportions of single pensioners and pensioner couples are on low incomes.
  • There is substantial variation in the proportion receiving the guarantee part of Pension Credit across the districts of Northern Ireland, ranging from 38% in Cookstown to 13% in Carrickfergus and Castlereagh, a ratio of almost three to one.  At 31%, Belfast occupies a middle position.  With a small number of exceptions (particularly Magherafelt and Armagh), districts in the far west and south west have higher proportions than other districts, including Belfast.
  • Research published in 2005 suggested that the minimum income that people over 65, with no defined disability, would need in order to live in a healthy way was £123 a week for a single person and £193 a week for a couple. Morris, J., Dangour, A., Deeming, C., Fletcher, A. and Wilkinson, P. , 2005. Minimum income for healthy living: older people. London: Age Concern Reports.  These figures, which exclude rent or mortgage and rates, are therefore after deducting housing costs.  They exceed the 2004/05 low income thresholds by £23 a week for a single pensioner, and £7 a week for a pensioner couple.

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Graph 1: Compared to GB

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Graph 2: Compared to other family types

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Graph 3: By LA

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Map

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Definitions and data sources

The first graph compares the proportion of pensioners in low income households in Northern Ireland compares with the regions of Great Britain.

The second graph shows the risks of being in low income for people in different family types.  Note that a couple (and therefore both of this adults) is classified as a pensioner couple if either of the adults is of pensionable age.

The data source for the first two graphs is Households Below Average Income, based on the Family Resources Survey (FRS).   Income is disposable household income after deducting housing costs and the low income threshold is the same as that used elsewhere, namely 60% of contemporary median household income.  All data is equivalised (adjusted) to account for differences in household size and composition.  The self-employed are included in the statistics.  Note that in 2007 DWP made some technical changes to how it adjusted household income for household composition (including retrospective changes) and, as a result, the data is slightly different than previously published figures.  The averaging over three-year periods has been done to improve statistical reliability.

The third graph and map show, for February 2007, how the proportion of people aged 60 and over in receipt of the guaranteed part of Pension Credit varies by local authority.

The data source for the third graph and map is the Department for Social Development Pension Credit statistics.

Overall adequacy of the indicator: medium.  The FRS is a well-established annual government survey designed to be representative of the population as a whole and the Northern Ireland sample has been boosted to improve sample sizes.  However, the Northern Irish sample is a recent addition to the survey and is yet to be fully quality assured by the Department of Work and Pensions.

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