§ Mr. BarronTo ask the Secretary of State for Social Security whether the lump sum payment offered by British Coal to retired concessionaires entitled to cash in lieu of concessionary fuel will be classified as capital; and if it will affect future payments of means-tested benefits.
§ Miss WiddecombeLump sum payments are normally treated as capital in the income-related benefits, and do not affect entitlement to benefit unless they take a person's total capital to over £3,000. However, where the 629W adjudicating authority decides that a person has deprived himself of regular payments of cash in lieu of concessionary coal in exchange for a lump sum payment for the purpose of obtaining benefit, or an increase in benefit, the person will be treated as if he is still receiving that income. We are asking British Coal to advise benefit claimants to seek advice before making a decision.