Savings Tariff For Council Tax Benefit

EDM number 1007 in 1995-96, proposed by Hugh Bayley on 18/06/1996.

That this House deplores the unfair rules for calculating tariff income from savings when assessing entitlement to council tax benefit and the punitive effect this has on pensioners on low incomes who have put money aside for their retirement; notes that the Government's rules make the ludicrous assumption that every ú250 of savings produces an income of ú52 a year, which implies that pensioners receive more than 20 per cent. interest on their savings when most banks and building societies currently pay around 2.5 per cent.; notes that interest rates have fallen since the tariff was set; and calls on the Government to review the tariff income rules to ensure that pensioners on low incomes are no longer penalised for their thrift and prudence in saving for retirement.

This motion has been signed by a total of 76 MPs.