§ Mr. Wheelerasked the Secretary of State for Social Services if he will now make available to the House the Report of the Supplementary Benefit Inspectorate on the supplementary benefit capital rule.
§ Mr. FowlerI have today arranged for copies to be available for hon. Members in the Vote Office and also for copies to be placed in the Library of the House. Copies may also be obtained by the public—price £1–60—from my Department's leaflet unit at Canons Park. I am publishing this report as an exceptional step, in view of the wide interest attracted by the capital cut-off rule introduced in November 1980. This action should nix, however, be seen as establishing a commitment on our part to the regular publication of reports by the inspectorate, which are in general prepared in confidence to help us to monitor and improve the management of the service; the case for any future publication will be considered on its merits at the time.
I shall welcome observations on the report and we shall continue to keep the operation of the rule under review. As I announced to the House on 10 March we propose to raise the disregard by 25 per cent. to £2,500 from this November. This will fully restore the value which the disregard held when it was introduced in November 1980.
Meanwhile, we are also taking action on two operational points which emerge from the report. First, since the report points to some weaknesses in handling the changeover, subsequent guidance for local staff has sought to remedy this and has laid stress on the importance of sympathetic treatment of such cases. A special leaflet about the treatment of capital is also being prepared which will be available by the summer.
Secondly, the report identifies two small areas of uncertainty in connection with the treatment of interest which accrues on savings accounts and of money which is held to meet regular bills, for example in a budget account. These points are being considered and advice will be given to local staff as soon as possible.