HC Deb 23 March 1976 vol 908 cc177-8
1. Dr. Phipps

asked the Secretary of State for Social Services whether she will exclude owner-occupied houses, which are the owner's sole dwelling, below a value of £10,000 in assessments for eligibility for social service benefit.

The Under-Secretary of State for Health and Social Security (Mr. Michael Meacher)

The value of an owner-occupied house is completely ignored in assessing entitlement to supplementary benefit, but it may affect the assessment of contributions under the legal aid scheme, the rules of which are the responsibility of my right hon. and noble Friend the Lord Chancellor, though claims are assessed by the Supplementary Benefits Commission.

Dr. Phipps

Is my hon. Friend aware that the value of a house which is the only home of the occupier is, in most cases, unreal wealth, because there is no way in which the owner can obtain the benefit of the value of the house without selling it and thereby making himself homelesss? Is he aware that there are many people in my constituency—

Mr. Speaker

Order. The hon. Gentleman is making out a case instead of asking a question.

Dr. Phipps

Is my hon. Friend aware that there are many people in my constituency, particularly widows, whose only wealth is in their houses and who otherwise would be nearly destitute—who cannot claim any benefits from his Department?

Mr. Meacher

I am aware of the point that my hon. Friend is making. It is precisely for that reason that the value of a house which is occupied by the owner is not taken into account in assessing supplementary benefit. In cases where a house is occupied by someone other than the owner, such as a close relative, it is taken into account. In those circumstances—I know this was the situation in the case which my hon. Friend referred to the Chairman of the Supplementary Benefists Commission—the Commission can exercise discretion in cases of hardship.

Mr. Boscawen

Can the hon. Gentleman confirm that when someone is taken into a residential home of a local authority, his income and the value of his house are taken into consideration by the authority?

Mr. Meacher

There are precise rules about how much income is taken into account when a person is admitted to a local authority home. He is permitted a proper amount for his own expenses—currently £2.65 a week.