§ Mr. DrewTo ask the Secretary of State for Work and Pensions (1) what plans he has to review the arrangements for the level of deductions from income support based upon an individual's capital limit; [16127]
151W(2) What research his Department has carried out into the relationship between the rate of interest and the level of deductions from income support, based upon capital limits; [16128]
(3) if he will make a statement on the Government's policy on income support for those who have relatively low savings. [16129]
§ Malcolm Wicks[holding answer 20 November 2001]: It would make no sense to carry out research into the relationship between interest rates and the level of tariff income deducted. This is because a tariff is deducted from income support on a sliding scale for capital held between the lower and upper capital limits. Capital is treated in this way so that people with capital in excess of the lower limit make a reasonable weekly contribution from those resources to help meet their normal living expenses before having recourse to public funds. It is not intended to represent any return that could be obtained from investing capital and is not based on the current bank interest rate.