Earned income disregards…

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  • #20203
    Stalbansbenefits
    Participant

    Schedule 3(3)(2) of the HBR provided an earned income disregard of £20.00 per week for pensioners who where previously entitled to the £20 disregard due to getting a disability premium, and who had continued to work into their retirement and had not stopped claiming HB/CTB.

    From what I understand, we are required to amend the Pension Service AIF where a higher earned income disregard is payable under the HB/CTB regs, but from what I can see, this is limited to lone parent earnings and the 30 hour earnings disregard.

    Is this correct? If so, we have a claimant who is going to be worse off because it appears we are now only disregarding £10 of her earnings as per the Pension Credit figures.

    #2363
    Mark
    Participant

    You are quite right that the AIF should be left alone. There was an attempt to replicate this provision in Pension Credit calculations but I don’t think they really managed it. If you look at the State Pension Credit Regulations 2002, Sch VI (4) you will see that there is a list of circumstances where the £20 earnings disregard applies. This includes cases where long term incap, SDA, AA and DLA are in payment and also cases where the £20 disregard was previously awarded prior to reaching 60 and someone is still working. The problem though is that this only seems to apply if the £20 disregard was included prior to reaching 60 in someones IS or JSA(IB) (NOT HB or CTB).

    There is also a provision that I just don’t understand in Sch VI(4)(3) to say that if someone was getting the £20 disregard in their Pension Credit award prior to reaching 60 then they can still get it after 60 under certain circumstances – but how do you get an award of Pension Credit before reaching 60? That’s a mystery to me!

    #2364
    Stalbansbenefits
    Participant

    After my original post I did root around the pension credit regulations and I agree there is protection to those claimants previously entitled to a £20 disregard in the assessment of their IS or JSA(IB) but not (as you state) for those who received it in their HB/CTB.

    I did contact the Pension Service unit to try and unfathom what Schedule VI(4)(3) meant but gave up when I was repeatedly told there was [b:a3e266aebe]no[/b:a3e266aebe] disregards from earned income in Pension Credit whatsoever…!

    I guess it would need an amendment to reg.15 to correct this anomaly, but the DWP may argue there must be so few cases affected for it to be issue – try telling that to the irate pensioner I had to deal with for an hour this morning!

    Perhaps a DHP is called for… 💡

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