Hi,

I am currently challenging the Pension services on how they treat income at the start of a claim to Pension Credit. I currently have an elderly client whose Retirement Pension and Occupational pension are paid into her current bank account. Her RP is paid 4 weekly and her occ pen is paid calender monthly. I am arguing that my client should be allowed the attribution period of both these incomes before it is treated as capital. As pension credit has taken these incomes in as capital at the outset of the claim it means my client is not entilted to guarantee credit. Guarantee credit replaced MIG, MIG was old Income Support, under IS R (SB)17/82 and IS reg IR (IS) 93 income is disregarded for the period it is paid for before it becomes capital. On arguing this point with Pension Services they replied - "under Metamorphosis (SPC) there may be case law soon, but there is none at present so the argument goes like this - there are no equivalent rules for attributing income in State Pension Credit over a period of time and that as a result payments of income become part of a claimants capital as soon as they are received. Section 17(1) of the SPC Act provides that capital shall be construed in accordance with section 15. Section 15(6)(c) provides that circumstances may be prescribed in which income can be treated as capital, though to date there are no such regulations in State Pension Credit Regulations 2002. I feel pensioners are being discriminated against by not allowing them this attribution period. Has anyone else challenged the Pension Services on this or are presently involved in an appeal? Please let me know your thoughts.

Can I ask a couple of questions?


Is the issue that the tariff income from this capital, presumably no more than a pound or two per week, is enough to remove entitlement to GPC?

Is the income being double counted, i.e. treated as income and capital in the same week?

Did the claim start in a part week? If so, all income is disregarded in that week.

Has there been an AIP ever set?

Is there any savings credit entitlement?


Would it be worthwhile your client spending some capital, not of course with a significant operative purpose being to acquire entitlement, for something needed or wanted? If that were, coincidentally, to bring entitlement and an AIP, then any increase in capital subsequently from this would be ignored.

Hi, thanks for your interest.

In answer to your questions yes the tariff income is enough to remove entitlement to GCP.

And yes it appears that Pension Services by not allowing the attribution of my clients income is treating this income as capital in the same week.

The claim did not start in a part week

No AIP has been set

And there is some savings credit in payment.

My client is not entitled to a GCP for the period 23/01/06 to 09/04/06 however due to the annual uprating from 10/04/06 she became entitled to Guarantee Credit.