Vol. 510 No. 6
342 Mr. Bradford asked the Minister for Social, Community and Family Affairs if he will revise the means testing system used for social welfare assessment in view of the fact the present system fails to take account of the real value of savings and investments; and if he will make a statement on the matter. [23645/99]
I have already indicated to the House that my Department is reviewing the current method of assessing capital, which was introduced by my predecessor.
As part of this review, a recent sample survey was carried out to identify the amounts of capital held by old age pensioners. This survey indicates that of the 35,000 pensioners who have capital, approximately 24,800, 70 per cent, have less than £5,000, while some 31,000, 88 per cent, have less than £10,000. Only about 4 per cent of pensioners surveyed had capital in excess of £20,000.
In the light of the survey findings, my Department is currently examining options for improving the method of assessing capital. However, in addition to benefiting those already in receipt of non-contributory pensions, any reduction of the current assessment rates would also be of benefit to pensioners with substantial amounts of capital and who are not currently entitled to payment.
I would be anxious, therefore, to ensure that any possible changes to the current rules would benefit those with modest amounts of capital while the system should continue to ensure that the small proportion of people with large amounts of capital should avail of it to contribute, at least partially, towards meeting their needs.
