§ 5. Mr. McAddenasked the Minister of National Insurance the reasons for including in the yearly means of applicants for non-contributory old age pensions a figure of 5 per cent. of the capital value of any capital owned by such applicants.
§ Dr. SummerskillThe rules governing the treatment of capital held by applicants for non-contributory pensions are laid down by the Statute. They enable a full pension to be paid to a single person with £865, or to a married couple with £1,730, where there are no other incomes. These sums do not seem to me to be inadequate in relation to pensions for which the applicants have paid no contributions.
§ Mr. McAddenDoes the right hon. Lady agree that it is not right to assume that the money which these people have saved yields an income of 5 per cent. when, if it is invested in an industry that has been nationalised, it will yield only 3 per cent., and it is subject to a double means test, which is most unfair?
§ Dr. SummerskillI think the hon. Gentleman has in mind the 1908 Act. He will recall the provisions of that Act, and the subsequent Acts of 1919 and 1924, which were finally consolidated in the 1936 Act, which is the Act expressing the law today.
§ Mr. OsborneWhat rate of interest is it assumed that this capital brings in?
§ Dr. SummerskillThat is another question, Sir.
§ Mr. McAddenI beg to give notice that, in view of the unsatisfactory nature of the reply, I propose to raise the matter on the Adjournment at an early date.