§ Dr. CableTo ask the Secretary of State for Social Security what plans he has to review the imputed rate of return on savings used in calculating entitlement to means-tested benefits. [124939]
§ Mr. BayleyThe system of tariff income in the income-related benefits is not based on any imputed rate of return. 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. Because no tariff applies to savings below the lower limit, the rule is most generous to people with relatively low savings; for example, in cases where the lower limit is £3,000 the annual tariff income for a person with savings between £3,000 and £3,250 would equate to just 1.6 per cent. of their savings.
The capital rules are kept under regular review.