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Benefit Claimants (Savings)

Volume 229: debated on Thursday 22 July 1993

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To ask the Secretary of State for Social Security what interest rate is assumed by his Department when calculating income from claimants's for social security benefits.

None. In all the income-related benefits, capital up to £3,000 is ignored. Deductions from benefit of £1 a week are made for each £250, or part of £250, of capital between £3,000 and the upper capital limit for the particular benefit. This formula does not imply any particular rate of investment. It is designed to ensure that help is targeted on those who need it most, while not denying benefit to those with only a moderate amount of capital. The rules are kept under review, but we have no plans for change.