asked the Secretary of State for Social Services on what date the present £1,200 capital disregard for people living in local authority residential accommodation was fixed; to what level it would have to be raised to keep pace with inflation; whether he plans to increase this disregard; and if he will make a statement.
The £1,200 disregard came into effect in November 1975. It would need to be raised to about £2,500 to reflect the movement in the general index of retail prices between mid-November 1975 and mid-October 1981. The level of the capital disregard will be one of the factors taken into account in framing new regulations—under section 22(5) of the National Assistance Act 1948, as amended—relating to the charges made by local authorities for residential accommodation. The date when the regulations will come into operation has not yet been determined.