§ Mr. WebbTo ask the Secretary of State for Social Security if he will estimate the cost of assessing income support entitlements on the basis of actual income from capital rather than tariff income, with no upper capital limit on eligibility. [58970]
§ Angela Eagle[holding answer 9 November 1998]: The estimated costs are £200 million in Income Support, and a further £80 million in Jobseeker's Allowance. The present tariff is not intended to represent any return that could be obtained from investing capital. The system provides a straightforward method of calculating the weekly contribution which people with capital in excess of the lower limit are expected to make from those resources to help meet their normal living expenses. The rules are designed to ensure that help is targeted at those who need it most whilst not entirely denying benefit to those with only a modest amount of capital.
Notes:
- 1. The estimates have been based upon net investment income, as tax paid on investment income is already deducted from the income brought to account for Income Support in our model.
- 2. Estimates are rounded to the nearest £10 million and have been based on the Department's Policy Simulation Model of income-related benefits. This model draws data from the 1995–96 Family Resources Survey, uprated to 1999–2000 levels, and calibrates results to forecast benefit caseloads. This calibration is consistent with the Department's Comprehensive Spending Review forecasts.
- 3. Results should be regarded as subject to a high degree of uncertainty. They should be interpreted not as precise point estimates, but as indicative only of broad magnitudes.