§ Mr. Bill MichieTo ask the Secretary of State for Social Security what weekly income pensioners with more than £3,000 savings are deemed to be receiving therefrom; and what assumptions as to interest rates lie behind this calculation.
§ Mr. Roger EvansFor income support claims, a deduction from benefit of £1 a week is made for each £250, or part of £250, held above £3,000 up to the upper capital limit of £8,000. Similar rules apply in housing benefit and council tax benefit, but the effect of the tapers which apply to those benefits means that housing benefit is only reduced by 65p and council tax benefit by 20p for each £1 above a set level. Additionally, a higher upper capital limit of £16,000 applies in housing benefit and council tax benefit. The formula for taking account of capital above £3,000 does not imply any particular return on investments. It ensures that help is targeted on those with the least resources, while not entirely denying help to those with moderate capital.