Terms & Conditions

[simondoyle]

Mark, I’ll have a go and am quite prepared to be shot down in flames!.
Firstly, I agree with you about the word ‘because’ in reg 68B(3)(a) – perhaps it should say ‘AND’.
I have spent some time in the last week trying to come up with scenarios for each of the new change of circs rules.
I disagree that reg 68B(2) can never take effect because it can only apply if reg 68B(6) applies also. It is possible that a Savings Credit and HB can increase without Guarantee Credit being awarded.
Example:
Clmt is aged 67, partner aged 59. AIF is £187.00 made up of SRP £87.00, PP £40 and partner’s part time earnings of £70 (less £10 disregard).
They do not get GC and qualify for £6.72 a week in SC.
If we say, for argument sake that their max HB is £75.00 a week, they will get £62.83 (AIF + SC = 193.72 – app amt 175 = XSI £18.72 * 65% = £12.17).
On 12 Nov, partner’s hours at work reduce to 10 hours a week – new earnings now £50 a week. Change is reported to the Pension Service on time. They recalculate the AIF (and they will because the change is something other than a change to retirement income). New AIF is now £167.
Their income is still too high to get Guarantee Credit but their SC will go up to £14.72. Overall, this will also result in an increase in their HB (up to £70.63 a week)
If we receive an ETD from the PS with the new AIF and new SC award details on 21 Nov (and here’s where I might be wrong), the change in the AIF is effected in the HB/CTB claim from Monday following the date of the change (or is it the Monday following the date we receive the AIF? – I’m not 100% sure here – any help would be gratefully appreciated!!). The increased SC will be affected in HB/CTB from 10 Nov 2003 (Monday of the week in which SC became payable at the new higher rate).

I agree that reg 68B(3) only applies where SC/GC becomes SC only or that PC entitlement ends completely.

Reg 68(5) applies where someone already getting HB/CTB who is not getting GC now but becomes entitled to SC (for example when they reach 65). Having said that, if someone makes an advance claim for SC, i.e. just before they reach 65, and the PS make the decision to award SC just after their 65th birthday, we will have 2 changes to action, the first will be the increase in their applicable amount from the Monday following their 65th birthday, the other will be to include the AIF and SC from the Monday following receipt of the AIF.

AND THEY CALL THIS SIMPLIFICATION!!!!

Not sure I have helped you much Mark. But I would appreciate anyone telling me if I have got my dates right about when to use the AIF!!!!