Pension Credit Handbook

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    Just trying to ‘understand’ the new Pension Credits and I have a couple of questions that maybe someone can help me with.
    Firstly, if I understand the calculation correctly, is the example 3 in Appendix A incorrect. The savings credit payable amount is right, but I disagree with the calculation of it, i.e. the qualifying income above the starting point should be £30 , the occy pension. This would give a savings credit amount of £18, but then restricted to the max. of £14.79. The remainder of the calulation being correct.
    Am I right?
    Another question is In Section 4 at 481. When moving from IS/JSA to PC and payment of HB/CTB should continue for 4 weeks, by which time the LA should have received details on the new PC entitlement and shall reassess as necessary. From when?The end of the 4 week period or the start? If from the start, I presume any o/p would not be recoverable. I think I may have just answered it myself, in that you would not create an overpayment and therefore you would not amend for the retro period. Is this right?
    Thankyou for any help received

    chris harvey

    When moving from IS/JSA to PC the claim is reassessed after the 4 week extension has ceased. The regs (new HBreg 62B) stipulate that during the extension period the whole of the income and capital of the claimant is disregarded thus ensuring they receive maximum benefit during this period.


    You’re quite right – that part of example 3 is wrong. Qualifying income is £107.45 ie £30 above the SC threshold.




    I agree there is a mistake in the Handbook.

    Yes it should say £30 over the “starting point” – and yes, this would lead to an £18 initial figure.

    However, the reduction using the 40% taper would be £2.14 leaving a savings credit of £15.86.

    I have developed a QuickCalc tool to work ’em out. Its very easy to use and faithful to the guidance issued so far. Send me an email if you want it.

    p e t e r . c o x @ b a s i l d o n . g o v . u k
    (leave extra spaces out if you mail me)


    I have discovered a flaw in the QuickCalc (only finished it this morning).
    Having fixed it I now think that the answer given in Example 3 is CORRECT.

    They don’t mention the £18 figure (£30 X 60%) in the calc, but they have correctly limited it down to £14.79.

    I think this was your original point wasn’t it Joannee? Sorry to confuse.

    Thank goodness for rigorous checking!

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