§ Mr. SpellarTo ask the Secretary of State for the Environment what regulations are laid down for local authorities in respect of capital for the calculation of housing/council tax benefit; and what is the rationale underlying the level of the implied return on capital.
§ Mr. BurtI have been asked to reply.
Regulations provide that no account is taken of £3,000 or less and that there is no entitlement to housing/council tax benefit where capital exceeds £16,000.
Where capital exceeds £3,000 but is not more than £16,000 an income of £1 a week is assumed for each £250 or part of £250 above £3,000. The formula assumes no particular return on capital invested. It ensures that help is targeted on those who need it most, including those with modest amounts of capital.