§ Mr. Bob RussellTo ask the Secretary of State for Social Security what proposals she has to reduce the assumed interest on savings in respect of granting housing benefit. [36355]
§ Mr. FieldThe formula for the calculation of assumed or notional income from capital does not represent any assumed rate of interest. It does, however, avoid the many practical difficulties that would arise if actual income were taken into account when assessing entitlement to Housing Benefit. It also strikes a balance between encouraging people to save and an expectation that people with more substantial savings can make some contribution towards their living expenses.