Hi,

My client claimed PCGC from 01-03-08 and has asked for major works bill to be considered along with her service charge. Pension service state that as the bill was issued on 01-10-07 that the liability arose prior to her PC claim however the bill for the major works is for 10 months, so technically when she claimed PC she had paid only 6 of the 10 payments due.

Does she have an argument that PC should pay, I think so but cannot get my head to work it out. I mean if you take out mortgage in 1999 and claim benefits in 2009 you would get help with that mortgage interest even though the liability began prior to the date of claim.

Thanks in advance.

You say that pension credit state that it was because the bill was issued prior to her claim for pension credit. As its "major repairs" even if she had been receivng pension credit in october 2007 they may have refused to pay. The regulations have a list of major repairs and improvements that are not eligible. Only the interest on a loan taken out to pay the bill could have been eligible.

But following a recent commissioners decision the cost of major repairs and improvement carried out under the Decent homes initative are now eligible. But sadly I feel that will not help your client.

They are eligible costs i.e. not excluded in the schedule it is a pure argument about when the liability to pay those costs arose, which is prior to start of PCGC claim but payments still due after that date.

I hope someone somewhere has an answer....

I would appreciate any comments on this, if anyone has any! Cheers.

Can you find out more about which regulation the Department is relying on because it is difficult to comment until that is known? The date of liability is usually only relevant if that liability arose during a relevant period. That is, or a family member of a person, on PC/IS/JSA/ESA or a linked period (a period of less than 26 weeks).

PC state that service charge liability from Oct 2007 for 12 months (i,e, time to be paid) and that cl claimed PC in April 2008 so they can only consider the payments due from April 2008 to Oct 2008 and not prior to that they have not put anything in writing as yet due to client sending lots of different details but they will now do so, i hope.

Hello

PC have now replied simply stating that when claim to PC made that customer asked to provide further details about major works liabilit, which she then did. However, it was noted that the date of the invoice predated the claim to PC and so cannot be included as an eligible housing cost.

There is no reference as to what regulation so any help as to what and why it should be paid, if that is the case would be greatly appreciated.

Thanks, again, in advance.

Hey

Just a further update the client is now being chased by the LA for arrears of the major works bill and so any help with this needed. It seems to be so obvious but just can't seem to get my head around it.

I'm unsure of the facts here. Did she just get repairs done and was invoiced for the oustanding bill? Or did she take out a loan to pay for the cost of the work?

The facts are she is a LA leaseholder and they invoiced her for the major works in October 2007 and she claimed on her 60th birthday PC in March 2008 and they say cannot included the major works from previous Oct as liability arose prior to PC entitlement.

Thanks in advance for any tips.

"liability arose prior to PC entitlement" is not a bar to entitlement. Usually the reverse. The question is: is she (from the date of the PC claim) liable to pay interest on a loan taken out for repairs that qualify under the pension credit regulations?

It isn't a loan it is an invoce from the LA does that make a difference?

It has to be a loan taken out to cover the cost of the repairs. She cannot just get work done then pass the invoice to the DWP to pay for it even if she pays the bill in installments. Is that what you are saying she's done?

No she is a leaseholder of the LA and they did the work on the block she lives in and all the leaseholders have to pay their % of the cost they simply say not eligible as liability arose before date of PC claim. The type of cost would be accepted if arose after made claim (as have cl on IS in same block and they are paying 100% of the liability) so it is just that simple point i.e. if liabiity pay the service charge (major works) arose priror to date of PC claim then they will not pay a bean.

I just don’t get any of this. The date of liability if not arising in a relevant period or not arising prior to 1995 is irrelevant.

If it is a service charge then service charges for repairs and improvements (as defined under paragraph 12(2) of schedule 2 of the PC Regs) are not eligible under paragraph 13 (2)(c).

However, if the charges are not excluded under paragraph 13(2)(a), (b) or (c) and they are to do with the provision of adequate accommodation I don’t see what the problem is, unless I’m missing the blindingly obvious

In essence the charges are not excluded but they refuse to assess them as they simply say, which is when we have been through to housing costs section and in their decision, that as cliamant did not claim PC until April 2008 they cannot include the service charge as it was invoiced in October 2007 i think it is wrong but would like something to come back to them with.

It makes no sense at all as you say if it is an eligible cost then what is the problem? I dont know hence this post. I would say that the cliamant has not made late notification either as she could not notify them until she made claim to PC when she was 60. I could even understand if they said we will not pay the installments due between October 2007 to March 2008 as there are 10 payments due but they will not pay any.

And here's me thinking it was an easy question!!