§ Mr. WillettsTo ask the Secretary of State for Work and Pensions how much must a person hold in savings to receive a weekly income of £23, assuming that interest is paid at(a) the bank base rate and (b) 10 per cent. [24224]
§ Mr. McCartneyIt requires a simple calculation to establish that a person would need savings of £29,900 to receive a weekly income of £23 if interest was paid at 4 per cent. per annum. Similarly savings around £12,000 would generate a weekly income of £23 if interest were paid at 10 per cent. per annum.
A pensioner with savings at these levels would be excluded from income support now. On the basis of illustrative rates, when pension credit is introduced in October 2003 a single pensioner with a full basic state pension and no other relevant income or capital other than savings of (a) £29,900 and (b) £12,000 would receive £3.80 and (b) £18.20 a week.