It is proposed to take Questions Nos. 90 and 91 together.
In assessing the value of capital for Unemployment Assistance purposes, the first £400 is assessed at 5 per cent and the balance is assessed at 10 per cent.
Arising from difficulties associated with the different treatment of capital under the various social assistance schemes, it was decided by the previous Government to introduce a standardised method of assessing capital. The introduction of the disability allowance scheme in October, 1996 and the one-parent family payment in January, 1997 presented the opportunity to commence the process of extending this revised capital assessment method to all social assistance schemes on a progressive basis. This process has almost been completed, with the extension of the standardised procedures to all social assistance schemes, other than unemployment assistance and supplementary welfare allowance.
Under the revised arrangements, the first £2,000 is disregarded, the next £20,000 is assessed at 7.5 per cent and the balance is assessed at 15 per cent. However, since the standardised method of assessing capital was first introduced in 1996, interest rates available on investments have fallen significantly. In the circumstances, I have arranged for my Department to review the current standardised method of assessing capital.
Any relaxation of the current rules would have financial implications and could only be considered in a budgetary context.