§ Mr. Freudasked the Secretary of State for Social Services to what extent social security benefits are affected by insurance payments, as in the case of flood victims; and if he will make a statement.
§ Mr. OrmeSupplementary benefit is affected by a person's capital resources. A lump-sum payment under an insurance policy would normally constitute capital, but a payment specifically for the purpose of making good flood damage, and to be spent as soon as practicable for that purpose, is not regarded as capital, although it would naturally be taken into account in considering any request for an emergency payment. I am writing to the hon. Member about the particular case which we discussed recently.