§ Mr. Charles KennedyTo ask the Secretary of State for Social Security if he will alter the formula for calculating interest on capital in determining an individual's eligibility for Council Tax Benefit so that it more accurately reflects the interest that might reasonably be expected to be earned from that capital; and if he will make a statement. [147578]
§ Angela EagleWe have already made arrangements to increase the lower capital limit from £3,000 to £6,000 from April 2001 for those on the Minimum Income Guarantee, and for those aged 60 or over on Housing Benefit and Council Tax Benefit. This is part of our commitment to continue the drive to end pensioner poverty. With the introduction of the proposed Pension Credit from 2003, we propose to abolish both the current capital limits and the assumed £1 a week rate of return for every £250 of capital, and to replace this with a system that ensures that those who have saved are rewarded for their efforts in their retirement.
292WAt the same time, we will also be looking at the treatment of income and capital in assessing entitlement to support for working-age families, including those on Council Tax Benefit, as part of our programme of modernising the social security and tax credit system.