§ Mr. Bowdenasked the Secretary of State for the Environment (1) whether his Department issues guidance to local authorities about the inclusion of national savings certificates in the assessment of entitlement to rent and rate rebates and rent allowances; if so, in what form; and if he will make a statement;
(2) how many local authorities are now taking into account national savings certificates when assessing entitlement to rent and rate rebates and rent allowances; and how income from such certificates is calculated.
§ Mr. StanleyWhen assessing a person's income for rent and rate rebate and rent allowance purposes, local authorities are required, under paragraph 3(4) of schedule 4 to the Housing Finance Act 1972, to calculate the weekly amounts not consisting of earnings on such a basis as appears to them to be appropriate in the circumstances of the particular case. Paragraph 27 of Department of the Environment circular 74/72 advised local authorities that
interest on national savings certificates should not be treated as income, but as an accretion of the capital sum.It was made clear, however, that this guidance was not an authoritative interpretation of the law. Since my Department does not normally collect data on either the number of authorities who include national savings interest in income or the calculation methods used by local authorities, this information could be provided only at disproportionate cost.