§ Mr. Warrenasked the Secretary of State for the Social Services when the level of £800 was fixed as the point at which investment income is no longer treated at the actual rate of interest in the computation of retirement benefits but has a higher national rate of interest; and if he will abolish this level altogether.
§ Mr. DeanI assume that the Question refers to the rules for assessing supplementary benefit. Since 1966, capital up to £300 is ignored entirely, capital between £300 and £800 is counted as income at the rate of 5p a week for each complete £25 of capital and capital over £800 is counted as income of 121p a week for each complete £25.
296WMy right hon. Friend has no plans for changing the rules, which are based on the principle that capital of more than a certain amount should be regarded as available to some extent for normal living expenses.