§ 31. Mr. Woodnuttasked the Minister of Social Security whether she will amend the Regulations which assess the tariff income of applicants for supplementary pension at 2s. 6d. per week for every £25 of capital in excess of £800, in view of the fact that this represents an interest rate of more than 25 per cent. on capital.
§ Mr. PentlandThe tariff income assumed on capital under the Supplementary Benefits Scheme does not represent interest. It represents the rate at which Parliament has thought it reasonable to assume that people with substantial sums of capital will draw on it for day-to-day living expenses.
§ Mr. WoodnuttDoes not the hon. Gentleman realise that this does not apply only to people with substantial sums of capital? Is it not quite ridiculous and does it not penalise thrift? People who have saved a few hundred pounds receive no supplementary benefit because of this absurdly high rate while others who have not been thrifty all their lives get help.
§ Mr. PentlandNo, Sir. I wrote to the hon. Member on 5th January and explained at great length the implications involved. An old person who is a householder paying 30s. a week rent and with no other income except capital, could have £2,000 and still qualify for a small supplementary pension, which would increase as his capital diminished. This represents a substantial improvement over the position under National Assistance as it existed under the previous Government.