PCSC assessment from April 2005

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  • #20300
    Anonymous
    Guest

    Hello

    Can someone out there clarify the new rules for savings credit and AIF assessment from April 2005 for me. Are we simply adding the SC and AIF together and seeing whether there has been an increase or decrease in the total income compared to the previous SC award details or do we look at the seperatley

    [u:ed448c6c01]Example[/u:ed448c6c01]
    Current details
    AIF £188.06, SC £19.60, so total £207.66

    New details from 03/05/05, notified 18/05/05
    AIF £188.99, SC £19.23, so total £208.22

    Is the answer
    1) Total income has increased so HB/CTB will decrease so it is effective on the claim from the Monday following 18/05/05, or

    2) SC has decreased so the effect of this single change is a HB/CTB increase so SC and new AIF would be effective from Monday of the week 03/05/05.

    3) Something else…..

    If SC had increased but total income had decreased, or stayed the same, when would this have been effective on the HB/CTB claim?

    I’m sure I’m making this too complicated for myself so please put me out of my misery!

    thanks 😀

    #2666
    APT
    Participant

    Just had a quick read of the various bits this relates to and my thoughts are as follows.

    The amendments only refer to the setting of an effective date and state that savings credit only cases should be dealt with under HB regulation 68B(2)-(5) and/or CTB regulation 59B(2)-(5). Those regs (or HBR68b(2) – (5) which I’ve just checked) specifically talks about state pension credit reducing or increasing, not the AIF increasing or reducing.

    So in the scenarios above it would be option 2 – consider the change to the SC payment, and then the amended AIF and SC are effective from the one date of change.

    It doesn’t sound too complicated , does it. Which rather makes me think I’ve got it wrong. 😉

    #2667
    Anonymous
    Guest

    Thanks for the reply, does anyone else out there in benefit land have an opinion on this?
    What do you all intend to do come April?

    #2668
    Anonymous
    Guest

    I contacted the DWP about this for clarification of the regs in relation to my example and they have sent the following:

    “The effect of the amendment described in paras 18 – 23 is to tie together the effective date of the change to the AIF and a change to the savings credit when it is a change to the AIF that affects the savings credit. So the answer to your question is your option 1 ie the overall effect of the change is to increase the income and this reduces HB/CTB so, assuming that there is no claimant fraud/error involved, the effective date is 23/05/05.

    If the overall effect of the change was to decrease the savings credit and the AIF and this meant a lower overall income which would increase HB/CTB the change would be effective from the benefit week in which the reduced savings credit becomes payable (reg 68B(4).

    If the result of the changes to the AIF and the savings credit is the same overall income, the HB/CTB will not be affected so there is no change of circumstances in respect of HB/CTB.

    The rule of thumb is that you should always act in the claimant’s favour. So, if the overall effect of the change would increase HB/CTB, the effective date is the week in which the change happens, but if the overall effect is to reduce HB/CTB, the effective date is the week after you receive the information from The Pension Service. The exception being that if the claimant fails to tell The Pension Service of a change that would reduce the savings credit and HB/CTB, the effective date is the week the savings credit should have reduced and a HB/CTB overpayment must be calculated.”

    My original example was –

    Current details – AIF £188.06, SC £19.60, so total income £207.66

    New details from 03/05/05, notified 18/05/05
    AIF £188.99, SC £19.23, so total income £208.22

    Is the answer
    1) Total income has increased so HB/CTB will decrease so it is effective on the claim from the Monday following 18/05/05, or

    2) SC has decreased so the effect of this single change is a HB/CTB increase so SC and new AIF would be effective from Monday of the week 03/05/05.

    3) Something else…..

    If SC had increased but total income had decreased, or stayed the same, when would this have been effective on the HB/CTB claim?

    regards

    Inga

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