§ Mr. EasthamTo ask the Secretary of State for Social Security what is the basis for calculating the savings rule for people with between £3,000 and £8,000; and how this has changed since the rule was introduced.
§ Mr. BurtA weekly deduction of £1 is made for each £250, or part of £250, of capital held between £3,000 and the upper capital limit, which was increased from £6,000 to £8,000 in 1990. This rule gives most help to those with the least savings. The formula is not linked to any particular rate of return that could be secured from investment and has not changed since the rule was introduced.