New Non Dependant Deduction Rate

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    As I said last week – I have now sent the following query to the Adelphi. I will post the response when I get it but would certainly appreciate other comments/predictions in the meantime:

    “HB Reg 63 and CTB Reg 52 (as amended for pensioners) contain new non-dep deduction rates for people who are in remunerative work and get State Pension Credit. The net effect of this is clearly to make sure that non dependants who get Pension Credit, whether working or not, will only have the minimum deduction made for them.

    My concern is that this new non-dependant deduction rate does not seem to apply where the claimant or partner gets IS/JSA(IB) because of regs 2(2) and 12(2) of SI2003/325. I am assuming that the new non-dep rate would apply to other (non-IS/JSA(IB)) claims where neither the claimant or partner are pensioners by virtue of the “any person” reference in regs 2(1) and 12(1).

    Can you please confirm whether this interpretation is correct”


    Well – here’s the answer and another follow up query from me:

    “All the provisions of the HB/CTB(State Pension Credit) Regulations (SI 2003/325) apply to claims only where a person, either the claimant, or where appropriate , the partner, has attained the qualifying age for State Pension Credit (currently 60) and no one is in receipt of Income Support or income-based Jobseeker’s Allowance. Thus, if the person does not meet those criteria, none of the provisions of SI 2003/325 apply; obviously this will include the non-dependant deduction provisions.

    With regard to the amount of the deduction, you have not got it quite right. See the answer to question 199 in the external questions log (part 2), on the HB part of the DWP website, which sets out all the deduction rates.”

    “Thank you for your swift reply. The reference to Q.199 in the external questions log is useful. I assume that your reference to me getting the rates wrong is because of the difference between a minimum HB deduction and a nil CTB deduction for PC recipients who are not in remunerative work. Unfortunately I am still confused so I would be grateful if you could answer the following:

    a) Are you saying that the “any person” reference in regs 2(1) and 12(1) only refers to claimants and partners?

    b) If so, where and how have the CTB regulations been changed to ensure that current non-dependants who get MIG will still have a nil deduction applied for them when they get Guarantee Credit instead?

    c) Is it the policy intention and the effect of the regulations that the special rates of deduction for non-dependants who get Pension Credit do not apply unless the claimant or partner is also a pensioner.

    d) When can we expect the amended legislation referred to in Q199? Is this the amendment that fixes the problems associated with my other questions?

    e) What is the “summer amendments” list referred to in Q199 and where can I get a copy?”

    Watch this space – or tell me if you know the answers!


    Well….here is the next (and final) instalment:

    (a) We’re puzzled – to whom else do you envisage it might refer?

    (b) Again we’re puzzled about what you’re getting at here. Non-deps on MIG will have a nil deduction assumed for them at the moment. If they were is remunerative work, they wouldn’t be on MIG (due to the remunerative work rules in MIG), therefore a deduction would be applied to them. If after 6th Oct and they are still in remunerative work and are on Pension Credit, a £2.30 rate of non-dep deduction would be applied. If they are in receipt of Pension Credit and not in remunerative work, no non-dep would be applied to them.

    (c) Once again, we’re not clear what you mean. If someone is on Pension Credit they must be over 60. Similarly, the rules in SI 2003/325 apply to people/partners who are aged over 60. Which non-dep deduction applies to non-deps on Pension Credit is dependent on the status of that non-dependent, not on the age of the householder.

    (d) the Miscelleaneous Amendment regs are scheduled for laying in week commencing 8th Sept.

    (e) basically, the same amendments as are now carried in the Miscellaneous Amendment Regs. This was a list complied to keep software suppliers in the know about what was likely to come up.


    Where does this leave us? Well – I do actually know the real answer now. Not from what you can read above mind you but from someone kindly sending me a copy of the strangely secretive summary of the proposed amendment regulations. It seems this was sent to software suppliers but not LA’s. Why there is an assumtion that we didn’t need it too is rather mystifying and certainly disappointing.

    Here is my answer to my own query. If only I’d actually received it!:

    “Mark – you are right. There is an error in the regulations and this was spotted by someone else some time ago. The amending regulations that will come out very soon will correct the error. It was never the intention that the rate of non dependant deductions as they apply to Pension Credit recipients would depend on the age of the claimant or partner. Once we have fixed the regs the special rates of non-dependant deduction if the non dependant gets Pension Credit will apply in all cases”.

    Case closed!

    P.S – I’m sure many of you will now want a copy of the Amendment Regs Summary. I did agree that I would not forward this to anyone because the provider was unsure whether the document was allowed to be circulated. I suggest you ask DWP for a copy.


    Mark, you’re brilliant!

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