SC where capital is now under £16K, can they claim HB?

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  • #20396
    Julie Wilson
    Participant

    We have a couple of cases where the claimant has been in receipt of Pension Credit for some time but did not previously qualify for HB or CTB due to the fact that their capital exceeded £16k.

    They have no had a change of circumstances in so far as their capital has reduced to below £16k and can therefore apply for HB/CTB. The Pension Service however will not revise the AIF for the reduction in capital as this change has taken place during the AIP.

    Are they now eligible to claim HB/CTB because the actual capital is below £16K and if so how do we treat the income as the AIF will still hold a tariff income representing capital over £16K.

    #2903
    Anonymous
    Guest

    Surely this is a mistake on the part of the Pension Service (a very rare occurence, I know, but these things do happen)? My understanding has always been that PC would not be recalculated during the AIP for [i:f178df0829]increases[/i:f178df0829] in capital, but decreases [i:f178df0829]would[/i:f178df0829] be taken into account.

    My immediate reaction is that I would accept the claim from the claimant (as long as you are happy there is no relevant deprivation of capital) using the AIF as it stands, to at least get something into payment, and query the Pension Service’s decision further. But I’d have a close look at the regs first…

    #2904
    Julie Wilson
    Participant

    my immediate reaction was the same, however I can’t find any reference to this in anything that I have read. Can you point me in the right direction?

    #2905
    Anonymous
    Guest

    As far as the revision of the AIF is concerned, having read through parts of the State Pension Credit Regulations 2002 and State Pension Credit Act 2002, I am sure that the Pension Service office in question have got that wrong.

    For the second part, I would justify the decision by saying that the claimant clearly now satisfies the qualifying conditions for HB/CTB. We are complying with the statutory requirement to use the AIF and, although we strongly believe the AIF is now incorrect, we can at least be sure we are not creating an overpayment.

    #2906
    Anonymous
    Guest

    Is this PCGC or PCAIF?

    For PCGC capital held can be over £16K, entilement to HB/CTB is still passported. The claimant may have a low income (e.g. only a small amount of pension) and a large amount of savings then the taffif income for the savings will not take them over their personal allowance, and they will still be entiled to PCGC.

    For PCSC, the Taffif Income from capital is included in the PCAIF, however the capital being over £16K does not disqualify them from PCSC, but will knock them out from entilement to HB/CTB.

    I’m guessing from the fact that The Pensions Service aren’t interested in adjusting the AIF figure that its a PCSC case. If the claimant is on PCSC, the AIF isn’t looked at (whatever happens, even a multi-million lottery win will not change the AIF) until it has come to the time for it to be reviewed. If its PCGC then they should be looking at it again if the capital changes.

    Not sure where this is in the regs, as I’ve not got them to hand, but I am sure that that is correct.

    Hope this is helpful
    Jon

    –Edit–

    ERK! answering the question I thought was asked, not the one that was asked! RTFQ!

    Hope that the above was helpful for someone 😉

    And yes, I agree with Andy that decreases in capital should be taken into account

    –further edit–

    Would the same Case Law that allows us to look behind IS/JSA decisions when we believe that it is incorrect be of any help here?

    #2907
    GHE
    Participant

    the claimant has an increase in occupational pension at the same time so when the pension service have looked at the claim again taking into account the increase in pension and the decrease in capital, the claimant would be worse off so they wont amend the aif.

    We have done a trial calc and she would receive about 58 per week hb and £8 ctb if not on pension credit.

    There is no provision in the regs for us to modify the aif if capital decreases and the pension service wont amend the aif so the claimant is stuck between a rock and a hard place.

    If the claimant with draws their claim for pension credit, they wont withdraw it retrospectively so even though we’ve had the claim since June we wouln’t be able to pay back to jUne because of the aif showing above £16k

    There is apparently no right of appeal to TPS and none to us so withdrawing the pension credit claim seems to be the only option.

    #2908
    Darren Tompkins
    Participant

    Have you spoken to the liaison officer of your Pension Service office directly? I’m sure that my liaison officer would certainly look at this, and I would have thought that if you explained that their decision is not in the customers interest they would look at it again.

    If the change in capital and change in Occupational Pension are not exactly the same date this could be another thing to ask them to consider.

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