Earned income disregards…

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    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.


    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!


    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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