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Top Pension Credit topic #280

Subject: "Pension Credit and AIP" First topic | Last topic
E Luke
                              

Unit Manager, Somerset Welfare Rights Unit, Taunton
Member since
22nd Jan 2004

Pension Credit and AIP
Mon 20-Dec-04 01:23 PM

I have been trying to get clarification from our local Pension Service on the following:

Client made claim for PC Guarantee + Savings. Receives AA so Severe Disability Addition applied. Client has Assessed Income Period of 5 years. Her son has now come to live with her and she advised the Pension Service of this. Expected that the Severe Disability Addition would be withdrawn under usual SDP and "living alone" rules but has been told that this does not affect her entitlement to the Severe Disability Addition until the end of the AIP.

I was aware that clients did not have to notify any changes in retirement provision (income/capital) during the AIP but did not think that this applied to entitlement to the additional amounts ie. Severe Disaiblity or Carers additions. Can anyone help? I asked the local PC to advise me where in the regulations it states this but so far no response. I am not worried for the client as she has a letter from the PC telling her that her PC will not be affected by this change but would just like clarification that this is so.

Elizabeth

  

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Replies to this topic
RE: Pension Credit and AIP, jimpepin, 21st Dec 2004, #1
RE: Pension Credit and AIP, E Luke, 21st Dec 2004, #2
      RE: Pension Credit and AIP, alban, 21st Dec 2004, #3
           RE: Pension Credit and AIP, E Luke, 21st Dec 2004, #4
                RE: Pension Credit and AIP, alban, 21st Dec 2004, #5
                     RE: Pension Credit and AIP, E Luke, 19th Jan 2005, #6
                          RE: Pension Credit and AIP, jimpepin, 19th Jan 2005, #7

jimpepin
                              

Adult Social Services, Borough of Poole
Member since
29th Jan 2004

RE: Pension Credit and AIP
Tue 21-Dec-04 10:04 AM

The CPAG handbook (page 1184) says that for PC, where you had an AIP and the DM hasn't been able to set a new AIP because you haven't provided all the info, a disadvantageous change takes effect from the day after the old AIP, not the later date when you finally provide the info. See D & A regs 6(7)(l) & 7(29)(B). Is your local DM getting confused with this?

The October 2004 edition of the Pension Service's own PC guide for claimants says (page 62) that people getting the SD addition should report a non-dep coming to live with them.

Jim

  

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E Luke
                              

Unit Manager, Somerset Welfare Rights Unit, Taunton
Member since
22nd Jan 2004

RE: Pension Credit and AIP
Tue 21-Dec-04 11:24 AM

Thanks for your input - I think that the Pension Service have misinterpreted there own rules on this one. This was an initial AIP set for 5 years (not a renewal AIP) but when I questioned it I was told that once an AIP was set no changes of circumstances needed to be reported. I have copied the relevant pages from the PC Guidance you referred to and will challenge them at a Liaison Meeting set for early January.

Elizabeth

  

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alban
                              

Income Project Officer, Age Concern England, Norbury
Member since
27th Jan 2004

RE: Pension Credit and AIP
Tue 21-Dec-04 11:42 AM

Hi all
I'm not so sure the Pension Service have got it wrong.
The State Pension Credit Act Sect 9, and State Pension Credit Regulations, Reg 12, set out the circumstances that bring an AIP to an end - getting married, entering a care home amongst others.
The circumstances of your client aren't listed -- closest is Reg 12(a) "The client no longer satisfies a condition on entitlement to state pension credit", nothing about entitlement to the various elements that go to make up Pension Credit. I think the AIP (and so the award at that rate) continues until it falls to be re-assessed at the end of the AIP.
I haven't looked at that latest edition of the PC guidance, but unless it quotes regs I can't see any need to inform Pension Service of this change of circs

alban

  

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E Luke
                              

Unit Manager, Somerset Welfare Rights Unit, Taunton
Member since
22nd Jan 2004

RE: Pension Credit and AIP
Tue 21-Dec-04 01:18 PM

I don't think the issue here is the ending of an AIP, but it is the supersession of a decision following a change of circumstances relating to entitlement. The AIP remains in place ie. the decision maker does not look at the "retirement provision" but at the claimants entitlement to the additional elements.

The guidance that Jim pointed out is clear "If you are over 65 an assessed income period may apply. This means that you do not need to report changes to pensions, annuities, equity release payments or your capital as they happen. You still need to report other changes of circumstances."

  

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alban
                              

Income Project Officer, Age Concern England, Norbury
Member since
27th Jan 2004

RE: Pension Credit and AIP
Tue 21-Dec-04 02:08 PM

Yes I understand what you're saying, but the AIP is an award of benefit and I still read the legislation to say that only certain specified circumstances bring that award to an end ...

Sect 6 of the Act (Duty to specify assessed income period) says that for people over 65 an AIP is set at the time the decision is made and I can't see why it would need to be superseeded if none of the prescribed grounds for ending it exist.

The factors that define entitlement to PC are set out in sections 1 & 2 of the Act (being in GB, of qualifying age and having an "income which does not exceed the appropriate minimum guarantee".
I don't think the make up of the various elements of Pension Credit are the same as 'entitlement' in this sense - where Reg 12(a) says that an AIP will be ended if the client "no longer satisfies a condition on entitlement to state pension credit" that refers to these basic conditions (so if it was only due to the SDP element that their income was less than than their appropriate minimum guarantee then they may no longer be entitled)

I have said in previous postings that I am struggling to understand some of the implications of AIPs, sand I'm not surprised that strange outcomes are still being thrown up
http://www.rightsnet.org.uk/dc/dcboard.php?az=show_topic&forum=105&topic_id=73&mesg_id=73&page=2

alban

  

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E Luke
                              

Unit Manager, Somerset Welfare Rights Unit, Taunton
Member since
22nd Jan 2004

RE: Pension Credit and AIP
Wed 19-Jan-05 02:51 PM

We have now had confirmation from a Decision Maker at the Pension Service who has stated that clients who no longer meet the criteria for the Severe Disability element need to notify this as a change of circumstances even although they have an AIP. The award will be superseded using the "retirement provision" originally given at the beginning of the AIP but the elements are adjusted to take account of the fact that the severe disability element is no longer appropriate.
They have confirmed that the decision given to our client is an "official error".

So effectively the AIP does not come to an end but the award is superseded within the AIP.

Elizabeth

  

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jimpepin
                              

Adult Social Services, Borough of Poole
Member since
29th Jan 2004

RE: Pension Credit and AIP
Wed 19-Jan-05 03:04 PM

That makes sense - are you sure it was the Pension Service who stated this?!!

Jim

  

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