HC Deb 27 July 1981 vol 9 cc338-9W
Mr. Alfred Morris

asked the Secretary of State for Social Services what representations he or his Department has received from the National Society for Mentally Handicapped Children and Adults and from the National Campaign for the Mentally Handicapped about mentally handicapped children being disinherited by their parents to evade the rule which takes away inheritances above £2,000 to pay for their keep in institutional care; what replies he is making; what action he is taking; and if he will make a statement.

Mrs. Chalker

The National Society for Mentally Handicapped Children and Adults has represented to nay right hon. Friend that the supplementary benefit capital rule discourages parents from making capital provision above £2,000 for their mentally handicapped children. My right hon. Friend will be replying shortly to the latest letter from the society. We shall consider the society's representations in our review of the arrangements for the treatment of capital on the supplementary benefit scheme. The society has also made representations about the assessment of a person's ability to pay for residential accommodation provided by local authorities. At present, local authorities normally take into account notional income on capital exceeding £1,200, but where capital is held on a discretionary trust, they have discretion whether or not to do so. We are consulting the local authority associations about possible approaches to a revision of this basis of assessment.

Mr. Winnick

asked the Secretary of State for Social Services what representations he has received from organisations representing disabled or handicapped members of the community regarding the effect of the £2,000 ceiling for supplementary benefit; and if he will make a statement.

Mrs. Chalker

We have received representations from the Association of Parents of Vaccine Damaged Children about the treatment of vaccine damage payments for supplementary benefit purposes, and from the National Society for Mentally Handicapped Children and Adults about the treatment of these payments and of other sums held on trust for mentally handicapped people.

We shall be taking the views of these organisations into account in our review of the working of the £2,000 capital rule, about which I refer the hon. Member to my reply to the hon. Member for South Ayrshire (Mr. Foulkes) on 21 July.—[Vol. 9, c. 88–9.]