Below is the text of Mr Major’s written Parliamentary Answer on Residential Homes on 6th March 1987.
Mr. Meacher Asked the Secretary of State for Social Services if he has any plans to change the amounts of capital disregarded when elderly people enter (a) private residential homes, assisted by his Department’s board and lodging payments or otherwise and (b) residential homes owned by local authorities.
Mr. Major The present rules are that residents in private and voluntary homes can claim supplementary benefit if their capital assets are not more than £3,000. When income support is introduced in 1988 new rules will apply. The capital cut-off point will increase from £3,000 to £6,000 but with a tariff income assumed of £1 for every band of £250 between £3,000 to £6,000. The joint central and local government working party on supplementary benefit and residential care, which is considering means of harmonising financial support for people in residential care homes, is also considering the future arrangements for financial assessment. Its report is expected at Easter.