§ Mr. GapesTo ask the Secretary of State for Social Security if he will estimate the cost in relation to income support of pensioners of reducing the assumed income from savings of between £3,000 and £8,000 to £1 per week per £1,000. [28898]
§ Mr. Roger Evans[holding answer 13 May 1996]: The estimated annual cost in 1996–97 is £60 million.
Notes:
1.Estimates are based upon date drawn from the 1991, 1992, and 1993 family expenditure surveys uprated to 1996–97 prices and benefit levels.
2.Estimates exclude cases in residential care and nursing homes.
3.Adjustments to these estimates are made using data drawn from the May 1995 quarterly statistical inquiry for income support.
4.Pensioners are taken to be all cases where at least one member of a couple, or a single person, is aged over 60 years.
5.Estimates are rounded to the nearest £10 million.
6.The estimate is based on assumed income of £1 per week for each £1,000 of capital held above £3,000 or part thereof.
§ Mr. GapesTo ask the Secretary of State for Social Security if he will estimate the cost of bringing the savings allowance for income support for pensioners into line with those for housing benefit and council tax benefit, and of setting the assumed income from savings above £3,000 to £1 per week per £1,000 for(a) income support for pensioners, (b) housing benefit for pensioners and (c) council tax benefit for pensioners. [28899]
§ Mr. Evans[holding answer 13 May 1996]: The lower and upper capital limits which apply in the calculation of income support are currently £3,000 and £8,000 respectively, and £3,000 and £16,000 in housing benefit and council tax benefit. For people living permanently in residential care or nursing homes, the lower and upper capital limits are £10,000 and £16,000 respectively in income support and housing benefit—from April 1996.
The estimated annual cost in 1996–97 of raising the upper capital limit in income support to £16,000 and reducing the assumed income from savings above £3,000 to £1 per week per £1,000 for pensioners on (a) income support is £220 million, (b) housing benefit is £140 million, and (c) council tax benefit is £80 million.
Notes:
1.Estimates are based on data drawn from the 1991, 1992 and 1993 family expenditure surveys uprated to 1996–97 prices and benefit levels.
2.Estimates exclude cases in residential care and nursing homes.
3.Adjustments to these estimates are made using data drawn from the May 1995 IS quarterly statistical inquiry for income support, and the May 1994 HB/CTB(MIS) for housing benefit and council tax benefit.
4.Pensioners are taken to be all cases where at least one member of a couple, or a single person, is aged over 60 years.
5.Estimates are rounded to the nearest £10 million.
6.The estimate is based on assumed income of £1 per week for each £1,000 of capital held above £3,000, or part thereof.