HC Deb 08 August 1972 vol 842 cc1462-3
1. Mr. Clinton Davis

asked the Secretary of State for Social Services if he will now consider increasing the amount of savings which can be disregarded for the purpose of determining eligibility for payments of supplementary benefits; and if he will make a statement.

The Under-Secretary of State for Health and Social Security (Mr. Paul Dean)

We intend to review the amount of capital disregarded in assessing supplementary benefit at an appropriate time, but I cannot yet say when that will be.

Mr. Davis

Is not the Minister aware that it is now a number of years since capital disregards were considered, that the value of savings has eroded considerably due to inflation, and that he should be more specific than he has been if some comfort is to be given to those who are entitled to supplementary benefit?

Mr. Dean

I appreciate the hon. Gentleman's point. Equally I am sure that he will appreciate that this has to be balanced along with all the other priorities, especially increasing the rates of benefits for those actually in receipt of benefit.

Mr. Norman Lamont

Is my hon. Friend aware that that is an extremely disappointing answer? Ought not the disregards to be increased automatically at the same time as benefits? How can my hon. Friend expect people to save for their old age when they are required to run down small capital sums with the result that they are no better off than those who have not bothered to save?

Mr. Dean

We want to encourage thrift. That is why a disregard is available. Equally, we cannot ignore capital resources where they exist. I remind my hon. Friend that the whole value of an owner-occupied house is disregarded and that people can have to up to £800 capital and still be eligible.

Mr. Robert C. Brown

Is the Minister aware that I share the disappointment expressed by the hon. Member for Kingston-upon-Thames (Mr. Norman Lamont) at his reply? I think that the whole House will be disappointed that the Minister does not see fit to make the review. When he does make it, will he give massive publicity to the total amount of the disregard, since a great many old people do not apply for supplementary benefit because they think they have a bob or two above the limit?

Mr. Dean

That is a slightly different point, but we are anxious to continue, and intend to continue, the publicity arrangements with a view to everybody who is entitled to those benefits claiming them.