We carried out a piece of research which studied whether the proportion of older residents in lower super output areas (LSOA) in England receiving disability living allowance and attendance allowance was statistically related to the degree of income poverty among older people in the area. (LSOAs are geographical areas with a mean population of 1,500 people; there are 32,482 LSOAs in England). The paper was peer-reviewed and was just published in the Journal of Maps (http://www.tandfonline.com/doi/abs/10.1080/17445647.2012.695441).
We applied a number of spatial econometric techniques, given the geographical nature of the data. The data for beneficiaries come from the Department for Work and Pensions. Income poverty among older people is one of the indicators compiled by the Social Disadvantage Research Centre at the Department of Social Policy and Social Work at the University of Oxford. The estimates of total population by age are from the Office for National Statistics.
We found a greater concentration of DLA and AA recipients over state pension age living in deprived areas than in more affluent areas: nearly 30 per cent older beneficiaries live in the 20 per cent poorest of areas and approaching two thirds live in the poorest half of areas.
Even after accounting for significant spatial effects, we still found a strong, positive relationship between proportion of beneficiaries and proportion of older people in poverty .
These allowances are therefore benefiting more deprived communities.
The study does not allow us to affirm that the allowances are directly benefiting older people in lower income. However we can conclude that these benefits, although not means-tested, would be partially addressing the geographical inequalities in income of older people across England.
Reducing or eliminating these benefits would hit the harder the poorer the neighbourhood.
Last year, Age UK helped 500,000 people put £120million back in their pockets through free benefits information and advice. This year, we will continue to break down the barriers that prevent people from claiming, in particular older people not realising that they are eligible for some additional income. For more information, please visit www.ageuk.org.uk/moremoney