Hi i was wondering if someone was able to help me. I have a client who is in recipt of Industrial Injuries Benefit and recently applied for Pension Credit. He was awarded Pension Credit but The Pension Service added Industrial benefit as income which was deducted from his Pension Credit. I don't know much about Industrial Benefit but i know it is tax free. Does this mean what the Pension Service did is correct or should it have been exmepted like DLA or AA is from Pension Credit?

Reg.15 of The State Pension Credit Regulations 2002, SI 2002/1792 gives a full list of exempted social security benfits. Disablement Benefit is not on the list, so counts in full as income. For the sake of completeness: constant attendance allowance and exceptionally severe disablement allowance which can be paid as supplements to disablement pension ARE exempt.