What do people think about this special exercise?
See Righst net news item - Notional income rules used to encourage take up - 20.9.2006

The DWP are going to invite a claim to state pension for people entitled but not claiming. This could lead to reduction in guaranteed pension credit.
The New guidance to housing benefit says if a person decides not to claim they will have this amount treated as notional income.

My thoughts - This going to generate more housing benefit overpayment if they claim or don't claim.
How is that a take up campaign in the traditional sense - more benefit?
When is it going to start?
How many people do the DWP think or know don't claim state pension?

WIth the exception of people who have died with no UK record, or who have moved to a state with no portability of pension, then the DWP should know about non-claimers.

Most of them will be people with small amounts of entitlement because of incomplete contribution records. I imagine that they don't claim because they don't believe they have an entitlement. If they're claiming HB/CTB or PC then presumably the 'don't take charity' argument wouldn't apply.

I suspect that the issue has crawled to the surface because of the notional income rules needed around pension deferral.

Assuming that most non-claimers have some other income then some people who do claim will float off GPC (and presumably onto some SPC) and therefore will be slightly better off, even if their HB/CTB drops.

Does the notional income apply to SPC? That would be interesting.

Some people could lose their entire HB/CTB entitlement if they are floated off GPC and have more than £16,000 capital. If entitlement to SRP is backdated for 12 months, will there be a recoverable overpayment of HB/CTB?

On the rare occasions I've met people who haven't taken up their SRP entitlement, the sums involved have been small. I suspect many of those identified will have a spouse claiming for them as a dependent in their own SRP, so the overall difference to the household income will be nil.

This project sounds like a lot of work for very little useful outcome.

Whoops, I hadn't thought about the capital risk, thanks.

What happens if there's currently an AIP?

Notional income and capital are both qualifying income for S/Credit - reg 9

If there's an AIP, Retirement Pension and nominal income are excluded from the fixing provision within sect 7(3) SPCA by sect 7(6), so they can introduce either, this would then end their AIP if they lost their entitlement to PC

Does that mean that if they acquire 'real' capital during an AIP - the famouis lottery win - then the tariff income is real, but ignored, but if they have capital that they could acquire on application then the tariff income is notional and could end the AIP?

It appears so, if my reading of this section is correct.