Scotland
Older people in low income households
Key points
- The proportion of pensioners living in low income households (using the low income threshold of the 60% of median income after deducting housing costs) has been falling, from an average of 31% of all pensioners in the years 1994/95 to 1996/97 to an average of 18% in the years 2003/04 to 2005/06.
- Pensioners are now less likely to be living in low income households than non-pensioners.
- One in five pensioners, both singles and couples, are on low incomes. This compares with half of lone parent families.
- 'Only' a fifth of low income pensioner households are more than £50 per week below the low income threshold compared to two-thirds of low income couples with children.
- The proportion of pensioners on low income in Scotland is similar to the rest of the United Kingdom.
- People in receipt of guaranteed Pension Credit is the best indicator available for the geographic distribution of low income among pensioners. More than twice as many people are in receipt of guaranteed Pension Credit in Glasgow, Eilean Siar and West Dunbartonshire than in East Dunbartonshire and East Renfrewshire.
Graph 1: Over time
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Graph 2: By household type
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Graph 3: Depth of low income
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Graph 4: Compared to the UK
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Graph 5: By LA
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Map
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Definitions and data sources
The first graph shows the risk of a pensioner being in a low income household, with the equivalent data for non-pensioners (working age plus children) shown for comparison purposes.
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 third graph shows the numbers of those on low income grouped by family type and divided according to how much additional money the household would need a week to reach the threshold of 60% of contemporary median income after deducting housing costs.
The fourth graph shows the proportion of pensioners in low income households in Scotland compares with the rest of the UK.
The data source for the first four 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. In the first and second graphs, the data is equivalised (adjusted) to account for differences in household size and composition whilst in the third it is not equivalised. 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 fifth graph shows the distribution of local authorities according to the number of people in receipt of the guaranteed part of Pension Credit (previously called the Minimum Income Guarantee). The data is for February 2007. The map shows the same data but by data zone. The data source is the DWP Work and Pensions Longitudinal Study. ONS population estimates have been used to calculate the proportions.
Overall adequacy of the indicator: high. The FRS is a well-established annual government survey, designed to be representative of the population as a whole. Note, however, that coverage does not extend beyond the Caledonian Canal.
External links
See the DWP sites on Pension Credit and Winter Fuel Payments.