§ Mr. Hannam
To ask the Secretary of State for Social Services whether, where a housing association provides residential care for elderly people, those residents who loan all but £3,000 of their capital to the housing association are allowed to receive full social security benefits; and if he will make a statement.
§ Mr. Portillo
Only supplementary benefit operates a capital cut-off under the present system. Regulations provide for any sum deposited with a housing association, as defined in section 189(1) of the Housing Act 1957 or section 208(1) of the Housing (Scotland) Act 1966, as a condition of occupying the home, to be disregarded. It is for the independent adjudication authorities to decide if this provision applies in the light of the facts of each case. From April, the same rule will apply to income support, housing benefit and family credit.