§ Mr. ChaytorTo ask the Secretary of State for Social Security what is the current assumed rate of interest in respect of capital for the calculation of council tax benefit. [33961]
§ Mr. Keith BradleyThe rules for the treatment of capital in Council Tax Benefit ensure that capital of £3,000 or less is ignored. There is no entitlement to Council Tax Benefit if a person's capital exceeds £16,000. For each £250 of capital above £3,000, but below the upper limit of £16,000, £1 per week is taken into account as income. This formula avoids the many practical difficulties that would arise if actual income were taken into account, and does not represent any assumed rate of interest.
§ Mr. ChaytorTo ask the Secretary of State for Social Security when the maximum level of capital for the calculation of council tax benefit was last uprated; what was the annual inflation rate in each year since the last uprating; and what would the current maximum level be if annual uprating to allow for inflation had taken place. [33962]
§ Mr. Keith BradleyThe maximum level of Council Tax Benefit, when it was introduced in April 1993, was £16,000. It has not been uprated since.
66WThe table sets out the annual inflation rate that would apply to Council Tax Benefit since 1993. Council Tax Benefit is uprated by Rossi and not RPI. Rossi is RPI (all items) less rent, local taxes and mortgage interest payments.
Uprating date Uprating percentages April 1993 3.6 April 1994 3.5 April 1995 1.8 April 1996 3.0 April 1997 2.6 The current maximum level of Council Tax Benefit if annual uprating to allow for inflation had taken place would be £17,815.30', based on Rossi.
Notes:
1. The Retail Prices Index (all items) and the Retail Prices Index (all items) less rent, local taxes and mortgage interest payments, produced by the Office for National Statistics, were used in these calculations.
2. Figures rounded to nearest 5 pence at each uprating date.