Apparent strange award?!?

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  • #20267
    Anonymous
    Guest

    I have a single claimant dob 10.07.1938 (65 years of age 10.07.2003!!)

    Pension credit award has come through effective 06.10.03 –

    AIF 117.65
    Appropriate/applicable amount 102.10

    Savings Guarantee calcd as £8.57

    **** I think it should be calc’d using the applicable amount of 116.90 – when this is calc’d I get the Savings guarantee to £23.37

    as so – 60% of the difference in 116.90 & 77.45 = 23.67
    minus – 40% of the difference in 117.65 & 116.90 = 0.30
    net savings credit would be £23.37?!?!

    can anyone shed some light on this? If my figures are wrong can you point me in the direction of the correct thread.

    Any help appreciated.

    cheers John

    #2561
    Bobkirkpatrick
    Participant

    The Pension Service figure appears to be correct. For starters, the maximum Savings Credit for a single claimant was £14.79 – so they couldn’t receive any more than this.

    I tend to calculate Savings Credit awards like this:

    Maximum Savings Credit: £14.79

    Qualifying income: £117.65

    Threshold: £77.45

    Excess income: £40.20

    60% of excess income: £24.12

    Amount A is lower of £14.79 & £24.12 = £14.79

    Appropriate Minimum Guarantee: £102.10

    Excess income: £15.55

    40% of excess income: £6.22 = Amount B

    Savings Credit = Amount A minus Amount B

    = £14.79 minus £6.22

    = £8.57

    QED

    Of course, this was the figure before the April up-rating – the current award of Guarantee Credit will be marginally different.

    #2562
    Anonymous
    Guest

    Why is the appropriate minimum guarantee 102.10? my figures seem to suggest 116.90 pre april 04

    Thanks

    #2563
    Bobkirkpatrick
    Participant

    Pension Credit is calculated using a Standard Minimum Guarantee of £102.10 (pre-April) for a single person.

    Housing Benefit is calculated using an Applicable Amount of £102.10 for a single person under 65, and £116.90 for single people over 60.

    The higher Applicable Amount for people over 65 reflects the maximum Savings Credit that can been awarded – i.e. £102.10 + £14.79 – £116.89.

    This ensures that pensioners awarded Savings Credit don’t have 65% of it clawed back through a reduction in their Housing Benefit.

    #2564
    Anonymous
    Guest

    Brilliant thanks

    #2565
    Anonymous
    Guest

    I have a penion credit calculator if anyone is interested in it. Just a thought, saves time.

    #2566
    Anonymous
    Guest

    Excellent, can you send it to me please john.wignall@liverpool.gov.uk

    #2567
    Anonymous
    Guest
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