§ Mr. Meacher
asked the Secretary of State for Social Services whether the proposed tariff given in paragraph 2.89 of Cmnd. 9518 on reform of social security of 40 pence for each £100 of capital between £3,000 and £6,000 is calculated on the current rate of investment income.
§ Mr. Newton
No. The proposed rate of tariff reflects both the fact that the first £3,000 of capital and any income derived from it will continue to be ignored and our view that it is reasonable to expect claimants with capital between £3,000 and £6,000, who will gain entitlement to benefit, to draw to some extent on their capital for living expenses.