Scottish Government

Statistics Publication Notice Economy Series
Benefits and Tax Credits in Scotland August 2004

24 ^th February 2005
A Scottish Executive National Statistics Publication

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This Statistical Publication Notice brings together a range of summary information published by DWP and Inland Revenue on benefit recipients in Scotland across a range of Benefits and Tax Credits.

Figures on Benefits have been provided by and published with the permission of the Department for Work and Pensions (DWP). Figures on Tax Credits have been provided by the Inland Revenue.

The figures presented are the latest available at the time of publishing: August 2004 for all benefits (except people of State Pension Age claiming key benefits are at May 2004, and Housing and Council Tax Benefit which is at February 2004) and December 2004 for tax credits.

The main findings are:

• There were 536,800 working age claimants of key benefits in Scotland as at August 2004. This equates to 17 per cent of the working age population ( Table 1)
• There were 212,700 children under 16 who live in families which claimed key benefits in August 2004. This equates to 22 per cent of the population under 16 years ( Table 2)
• There are 945,400 people over State Pension Age claiming key benefits as at May 2004. ( Table 3)
• Working age people claiming key benefits has decreased from 562,800 in 2001 to 536,800 in 2004. Children in families claiming key benefits has declined from 223,000 in 2003 to 212,700 in 2004. However, it should be highlighted that the figures are affected by the introduction of Child Tax Credit in April 2003 ( Table 6). The number of people over State Pension Age claiming key benefits have increased between 2001 and 2004 from 913,000 to 945,400. (Tables 4, 5 and 6)
• The number of in-work families with children in Scotland with an award for Child/Working Tax Credit was 383,500 at the 3rd December 2004. Of these, there were 136,500 families who had an entitlement to both Working Tax Credit and Child Tax Credit. ( Table 7)
• The number of in-work families with an award for Child or Working Tax Credit has risen from 379,500 at 11 ^th July 2003 to 450,100 at 3 ^rd December 2004. Working families with children entitled only to Child Tax Credit has increased from 219,200 to 238,700 over the same period. ( Table 7)

BACKGROUND NOTES

1. This publication brings together figures on benefits recipients in Scotland across a range of benefits and tax credits. The headline figures for Scotland for both benefits and tax credits for these dates have already been published by DWP and Inland Revenue. The tables in this publication, together with further breakdowns at Scotland and Local Authority level are available at http://www.scotland.gov.uk/stats/bulletins/00395-00.asp .

2. The DWP publish benefit data quarterly, including headline figures for Scotland and Scottish Local Authorities. The Inland Revenue publish tax credit statistics twice a year, including figures for Scotland. The figures can be accessed from DWP and Inland Revenue at the following websites, together with background information on benefits and tax credits:

Client Group Analysis:

3. Working Age Adults:

http://www.dwp.gov.uk/asd/asd1/cga_wa/CGA_WA_Aug04_bulletin.pdf

Children:

http://www.dwp.gov.uk/asd/asd1/cga_famchild/CGA_FC_Aug04.pdf

Pensioners: http://www.dwp.gov.uk/asd/asd1/state_pension/cga/CGA_Pen_Bulletin_May_2004.pdf

Back publications: http://www.dwp.gov.uk/asd/cga.asp

Income Support: http://www.dwp.gov.uk/asd/isqse.asp

Pension Credit: http://www.dwp.gov.uk/asd/asd1/pc/pc_quarterly_aug04.asp

Jobseeker's Allowance:http://www.dwp.gov.uk/asd/jsa_qse.asp

Incapacity Benefit: http://www.dwp.gov.uk/asd/ib_sda.asp

Severe Disablement Allowance: http://www.dwp.gov.uk/asd/ib_sda.asp

Disability Living Allowance: http://www.dwp.gov.uk/asd/dla.asp

Attendance Allowance: http://www.dwp.gov.uk/asd/aa.asp

Carer's Allowance:http://www.dwp.gov.uk/asd/ca.asp

Council Tax Benefit: http://www.dwp.gov.uk/asd/hbctb.asp

Housing Benefit: http://www.dwp.gov.uk/asd/hbctb.asp

Child and Working Tax Credit:

http://www.inlandrevenue.gov.uk/stats/personal-tax-credits/cwtc-quarterly-stats.htm

https://www.taxcredits.inlandrevenue.gov.uk/Qualify/WhatAreTaxCredits.aspx

Impact of the introduction of New Tax Credits on benefit figures

4. Benefit figures in this, and future Statistical Publication Notices are affected by the introduction of Child Tax Credit (CTC) in April 2003. The main changes were:

• Child dependency increases paid with non-income related benefits were abolished for new claims to State Pension, Bereavement Benefit, Incapacity Benefit and Carer's Allowance from April 2003.
• CTC replaced the child elements of Income Support (IS) and income-based Jobseeker's Allowance (JSA(IB)) from April 2004.

Dates when there may be particular changes in the figures are:

• April 2003, when child dependency increases paid with non-income related benefits were abolished for new claims.
• October 2003, when families with children on Minimum Income Guarantee (MIG) with child elements migrated to CTC.
• Financial year 2004/05, when families on Income Support and income-based Jobseeker's Allowance child elements migrated to CTC.

Further points are:

• A small number of IS/ JSA(IB) recipients are no longer eligible once CTC is in payment. This is because CTC payments raised total income above the IS/JSA(IB) threshold, or other income exceeds the threshold once child allowances are removed.
• It is therefore advised that users exercise caution when performing year on year comparisons, or when comparing with the previous quarter.

DWP'S Modernising Statistical Publications Project

5. Currently the benefit data in the SPN is based on 5% samples. DWP's Modernising Statistical Publications project will involve moving over to 100% data sources later in 2005, plus improved coverage and client group definitions. Full backseries using the 100% data will be provided to enable comparisons over time on a consistent basis. The public consultation document for this project, and response to the public consultation can be found at:

http://www.dwp.gov.uk/asd/asd1/stats_consultation/stats_consultation.asp

Data Sources

6. Figures on benefits are supplied by the Department for Work and Pensions. Figures on Tax Credits are supplied by the Inland Revenue.

7. Figures on key benefit claimants are based on a 5% sample of cases and are thus subject to sampling error. The tax credit data are based on a sample of 10% of single adults (with or without children) and 20% of such couples. Each figure is derived by weighting the relevant sample cases by the inverses of these sampling fractions.

8. Where figures are preceded by an asterisk, they are based on a small number of sample cases and greater care should be taken with their interpretation.

9. Population estimates are from June 2003 from General Register Office for Scotland (GROS).

10. 'Neighbourhood Statistics' are a collection of data that provide wide-ranging information on social conditions in neighbourhoods. They have been developed to provide essential information to underpin the National Strategy for Neighbourhood Renewal. A web-based statistical system for small geographical areas has been developed to disseminate information on population, access to services, community well-being, crime, economic deprivation, education skills & training, health, housing, the physical environment and work deprivation. DWP have provided a range of detailed benefits information for the Scottish Neighbourhood Statistics System (SNS) ( http://www.sns.gov.uk/) at Ward, SIP and Parliamentary Constituency level. Ward level data for 2001 and 2002 are expected to be available on the SNS website by early Spring. Further information for the UK is available on the Office For National Statistics Neighbourhood Statistics website at http://neighbourhood.statistics.gov.uk.

11. Housing Benefit and Council Tax Benefit figures are not available for August 2004 because of data quality investigations. August 2004 figures will be published on 16 ^th March 2005 by DWP.

National Statistics

12. National Statistics are produced to high professional standards set out in the National Statistics Code of Practice. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference. Further information about the Code Of Practice can be accessed at: http://www.statistics.gov.uk/about_ns/cop/default.asp

Issued by:
Office of the Chief Economic Adviser
Scottish Executive
St Andrew's House
Regent Road
Edinburgh
EH1 3DG
Telephone:
Press Office: 0131 244 1111
Statistician: Bianca Heggie Tel: 0131 244 2583

Table 1 Working Age Claimants of Key Benefits by Statistical Group and Local Authority, Scotland, August 2004 ^1,

Source: Department for Work and Pensions, Information Directorate
1 Key benefits are Jobseeker's Allowance (JSA), Incapacity Benefit (IB), Severe Disablement Allowance (SDA), Income Support (IS), Disability Living Allowance (DLA) and National Insurance Credits only (through JSA or IB).
2 Percentage of the population aged 16-59/64 years.

Table 2: Children Under 16 in families claiming Key Benefits by Local Authority, Scotland, August 2004 ¹

Source: Department for Work and Pensions, Information Directorate
1 Key benefits are Jobseeker's Allowance (JSA), Incapacity Benefit (IB), Severe Disablement Allowance (SDA), Income Support (IS), Disability Living Allowance (DLA) and National Insurance Credits only (through JSA or IB).
2 Percentage of the population aged less than 16 years.

Table 3: Population over State Pension Age Claiming Key Benefits by Statistical Group and Local Authority, Scotland May 2004 ¹

Source: Department for Work and Pensions, Information Directorate
1 Key benefits are Retirement Pension (RP), Pension Credit (PC), Attendance Allowance (AA), Disability Living Allowance (DLA), Incapacity Benefit (IB) and Severe Disability Allowance (SDA).
2 Percentage of population aged 60/65 years and over. These are the General Register Office for Scotland population estimates as at June 2003. These population estimates are around one year behind the benefit data and due to this, percentages shown as 100 may be higher than 100, but have been rounded down ( i.e. the benefit caseload is apparently at least as high, if not higher, than the corresponding population figure.)

Table 4: Working Age Claimants of Key Benefits, Scotland, 2001-2004

Source: Department for Work and Pensions, Information Directorate

Table 5: Over State Pension Age Claimants of Key Benefits, Scotland, 2001-2004

Source: Department for Work and Pensions, Information Directorate

Table 6: Children in Families claiming Key Benefits, Scotland, 2003-2004

Source: Department for Work and Pensions, Information Directorate

Child Tax Credit was introduced in April 2003, for further information please see background note 4.

Table 7 Families with Child or Working Tax Credit awards, or with children and receiving out-of-work benefits, July 2003-December 2004

Source: Inland Revenue