Has anybody come across this before?
Case of woman on PC with carers addition because she was caring for her neighbour when she claimed. AIP on PC is for 5 years. Now, no longer caring for neighbour so she contacted PS to inform them of this. They have told her that her PC is unaffected until the end of her AIP. She will in effect be over paid by £6000!! Can't find anything specific to Carers addition and this rule. What do you think? Us long in the tooth WR advisers don't believe it!!

The fact that CA has stopped is not a reason for the AIP to end.

AIP won't end but this isn't the same as saying PC won't/can't go down is it? CP dependent on entitlement to CA and this has now gone so PC should reduce 8 weeks after CA entitlement ceases. AIP relates to what you have to report and how this affects PC award re increases in retirement provision rather than entitlement to premiums?

I've brought this thread back to the top because I have a similiar question for which I'm seeking an answer.

My client is in an AIP and is entiteld to approx £70 SPC(GC). However, he's gone into hospital. AA stops next week so he will no longer be entitled to the SDA in his appropriate amount.

Is this a reportable change that will end the AIP? According to the act and regs it doesn't seem to be a change that will end an AIP, but on the other hand, it's not a change related to 'retirement provision' - at least I don't think AA counts as retirement provision.

The problem is that the client now has savings that will reduce GC to nil by tariff income. So if PC does end there'll be issues with HB/CTB.

It is possible/feasible, that the PC can be revised to reflect the reduced AA, but leave the AIP in place? This will result in the client having a reduced entitlement to GC, but will not change HB/CTB.

The law doesn't seem that clear. Does anyone know the answer?

Thanks,

I don't see how they can interfere with the AIP. As you say this is not a change in retirement provision. If they recalculate based on new capital and end the AIP you would surely have grounds to appeal on the basis that AA is not retirement provision. The rules are so unclear that you should have a good chance of success.

In terms of the original question I know that initially PS were not ending entitlement to Carer Element even after death of person cared for (and were in fact refusing point blank to do so, despite local workers telling Dundee it should end after the run on). Not sure if they are still doing this!

I've thought a bit more about this. Based on £70 GC he will still get GC even after losing SDE so will still be in AIP. This should mean that when he comes out of hospital SDE will recommence when AA starts and he will still be on same AIP so savings will not count and he should go back to the same rate.

Effectively the SDE element is suspended for the time being.

I hope I've thought about this properly - shouldn't post in haste!

Thanks for your replies Derek.

In my client's case, if he loses SDA and the tariff income is counted, he'll lose GC altogether, but if the AIP stays the same, he won't lose GC.

I guess the question is this: Is the AIP a standalone issue from other questions of entitlement? and, if so, to what extent?

I suppose if it is, then that's a good thing. I can't think of any examples where someone might lose out becuase of an AIP, but it does seem extraordinarily generous for some potential changes of circs.

If a person looses there entitlement to SDP or CP it is only that part of the PC claim that is affected, a new calculation of savings etc is not done during an AIP unless there is a change to the status as a couple or single person, change in retirement provision i.e. a new pension or annuity or ending of a pension, your partner reaches 65, you move into care. If a premium is lost due to no longer being entitled a new calculation is made based upon the pension , capital and marrital status the pension service have on file. I have clients who have lost GC as a result of a premium stopping and also clients who have had an increase in capital (e.g. inherited money) but not income from capital (not a regular amount from capital) and therefore have not had a change in retirement provision. Any changes calulated as far as savings are done at the end of AIP