§ Mr. Jim CunninghamTo ask the Secretary of State for Social Security under what circumstances loans, other than student loans, are counted as income when applying for social security benefits. [26851]
§ Mr. Roger Evans[holding answer 29 April 1996]: Money from a loan may be treated as income if it is a sum received regularly—weekly, monthly or even annually—and will be taken into account at an equivalent weekly rate.
Lump sums received as one-off loans will generally be treated as capital and will not affect benefit if a claimant's overall capital remains below the lower capital limit— £3,000 for most claimants or £10,000 for people in residential care or nursing homes.