Pension Credit Income Assumption

Dear Sir or Madam,

The government website informs us at:

http://www.direct.gov.uk/en/MoneyTaxAndB...

that for Pension Credit assessment an "assumed income" is based on
a figure of £1 per week for every £500 held as savings. This is
equivalent to an assumption of 10% interest earned by the savings.

This is clearly not a reflection of current savings interest and
has the effect of making the Pension Credit recipient pay the
government the difference between 10% and what is truly earned by
denying the recipient the full credit he should reasonably be
entitled to.

In a previous written reply Rosie Winterton said:
"Tariff income rules provide a simple method of calculating the
contribution people with £6,000 of capital are expected to make and
does not reflect any rate of return."

As there is an assumption of income from savings and it can only
come from interest a simple Tariff is not a reasonable means of
assumption. The assumption rule does not bear any relationship to
what might reasonably be assumed.

Will the Secretary of State for Work and Pensions please review
this unfair situation and periodically (at least annually) bring it
into line with current rates or a rate based on Bank Rate.

Yours faithfully,

L. A. Outridge

Dear DWP Adelphi Freedom-of-Information-Request,

I am still awaiting a reply to my question. Under the Freedom of
Information Act you should have replied by now and you are breaking
the law by not doing so.

Please reply to my question immediately.

Yours sincerely,

L. A. Outridge