Clause 51 — Period of entitlement to contributory allowance

Part of Oral Answers to Questions — Prime Minister – in the House of Commons at 1:15 pm on 1st February 2012.

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Photo of Stephen Timms Stephen Timms Shadow Minister (Work and Pensions) 1:15 pm, 1st February 2012

We are being taken into a slightly broader argument, but I will answer the point directly. The capital limit has always been a feature of means-tested out-of-work benefits. It was never a feature of the tax credit system because the previous Government wanted to encourage people in work to save. That incentive to save is being destroyed by the application of this capital limit—exactly the same capital limit—in future to people in work as well as out of work. That is another terrible feature of this Bill.