Speaking at an Age Concern and Help the Aged event at the Tory Party conference last week, Shadow pensions minister Nigel Waterson (pictured) said the rules as they stand “add insult to injury”.
At present, the Department for Work and Pensions assumes savers receive a 10 per cent return on any savings above the £6,000 tariff income threshold when assessing income for entitlement to means-tested benefits.
With interest rates at an all-time low of 0.5 per cent, consumer groups have called on the Government to review the rate and either reduce it or raise the £6,000 tariff income level.
Waterson said: “The tariff income rule assumes if you have any savings, you get 10 per cent return on it before you are entitled to any benefits. That is something we would look at.”
Waterson also said the Tories would consider bringing forward the date of auto-enrolment into existing pensions.