§ Sir Andrew BowdenTo ask the Secretary of State for Social Security what effect converting an occupational or private pension assessed as trivial by his Department into a lump sum has for income support purposes; and if he will assess the advantages of disregarding a trivial occupational or private pension for income support purposes. [13782]
§ Mr. HealdA lump sum acquired in this way is taken into account in accordance with the normal rules which provide for the first £3,000 of capital to be disregarded. A person who commutes a pension into a lump sum with the intention of securing income support, or of increasing the amount of benefit payable, can be treated as if that income were still in payment. There are no plans at present to change these arrangements.