Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential benefits of reducing the current £16,000 savings threshold for entitlement to Employment and Support Allowance.

We have no plans to change the capital rule on income-related Employment and Support Allowance (ESA).

Entitlement to contributory ESA is not affected by the amount of capital a person has.

The current upper capital limit strikes a balance between protecting less well-off people and protecting the taxpayer, whilst at the same time recognising the conscientious efforts of people who have built up capital. This limit ensures that the help which comes from taxpayers, many of whom are themselves on low incomes and have limited capital, is directed to people who need it most.

The effect of reducing the savings threshold would be that fewer claimants would be entitled to ESA.