Because you pay tax in the current year if you get the princely sum of more than £91 a week it means that single women of 60 and over and under 65 may pay tax on their state retirement pension.

Like the cases for IS and JSA referred to here, http://www.rightsnet.org.uk/pdfs/DMG_04_05.pdf ,the DWP were in denial that tax could be taken into account for PC.

LITRG had a long battle over months and had the DWP concede on our "test case".

This gives everyone problems, not least the Revenue who are not geared up to give estimates of tax liabilities under the Self Assessment system.

There is a bit more information on www.litrg.org.uk.

I know it is not the done thing to respond to your own postings, but the DWP have now issued equivalent guidance for pension credit to put it on the same footing as IS and JSA.

This is in Rightsnet News at:

http://www.rightsnet.org.uk/cgi-bin/forwardsql2/search.cgi?template1=user_details2.htm&news.ID_option=1&news.ID=329161321854