Means-tested Benefits: Coronavirus

(asked on 18th March 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps she has taken to prevent (a) people over state pension age, (b) disabled people and (c) other recipients of means-tested payments from experiencing (i) a reduction in benefit, (ii) an overpayment reclaim and (iii) becoming ineligible for a means-tested payment as a result of changes to their savings due to economic disruption during the covid-19 outbreak.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 23rd March 2021

No such assessment has been made.

There have been no steps to change the savings threshold limits, which allow people to continue to receive means tested benefits even though they may have an increased amount of capital, by gradually reducing the level of their entitlement.

The capital thresholds strike a balance between protecting less well-off people and the taxpayer, whilst at the same time recognising the conscientious efforts of people who have built up capital. This limit also ensures that the help which comes from taxpayers, many of whom are themselves on low incomes and have limited capital, is directed to people who need it most. Whilst it is important to encourage saving, it has never been thought right for substantial amounts of capital to be ignored, therefore it is also reasonable that there should be a capital limit above which benefits are not available.

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