State Pension

Work and Pensions written question – answered on 6th November 2001.

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Photo of James Plaskitt James Plaskitt Labour, Warwick and Leamington

To ask the Secretary of State for Work and Pensions how many pensioners had a reduction in their state retirement benefit as a result of a stay in hospital; by what amount the state retirement benefit is reduced in these circumstances; and how much was saved by his Department as a result of reduced benefit payments in the last full year for which figures are available.

Photo of Ian McCartney Ian McCartney Minister for pensions, Department for Work and Pensions

At 31 March 2001, there were about 33,000 retirement pensioners with reductions in their retirement pension due to a stay in hospital 1 .

The hospital downrating rules led to an estimated £57 million reduction on expenditure on the basic state pension in 2000–01.

From 9 April 2001, a £14.50 reduction for a person with a dependant applies after a six-week stay in hospital. This reduction was £13.50 at 31 March 2001.

From 9 April 2001, a £28.30 reduction for a person with no dependant applies after a six-weeks stay in hospital. This reduction was £27.00 at 31 March 2001.

After 52 weeks retirement pension recipients get the £14.50 "pocket money" rate.

1 Source:

5 per cent. from the Pension Strategy Computer System at March 2001. Rounding to nearest hundred

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