It seems when a PC award letter is sent out even with a 5 yr AIP the award includes a leaflet which is causing confusion. It informs the claimant to inform of any changes in circumstances. They then list the changes for example, becoming part of a couple, single etc which would affect the AIP but strangely they also include an increase in savings! Whats more the LA, HB dept (which is not one involved in joint working as yet!)is being requested to inform PS of all the info they have too, for example if savings go above £16,000 for people just on PCsc. A circular G2 is being quoted as the reason why. Have you come across this in your area?

I've not come across it yet, I'm a bit concerned about why they are requesting information about income or savings during an AIP and what they intend to do with the information.

G2/2005 is available at http://www.dwp.gov.uk/housingbenefit/news/newsletter/bulletins/2005/g2_bulletin_feb.pdf

mmm exactly !! Call me cynical, but like many other 'long in the tooth' WR's people I always thought the AIP was to good to be true!!!

I suppose there could be two reasons for requiring the capital data. Firstly, in case they want to decide that the increase was foreseeable (I have not looked it up for a while, but I think they can count changes that were foreseeable shortly after the claim - 12 months?). Secondly, they can pass the info to their colleagues at the HB office, when its a Savings Credit only case.

Steve

It all depends on whether the client is getting guaranteed PC or just Savings credit.

If GPC, then any increase in capital during the 5 year AIP - lottery win, sale of property, inheritance tec, does not affect the GPC award, and therefore entitlement to HB/CTB will continue.

If Saving credit only however, any changes to capital etc must be notified to the relavent HB/CTB section, and will affect HB/CTB claim.



On a slight change of tack - deferred State Pension claimants, (or - it's not so simple as it sounds).

Where pensioners choose to defer taking their state pension, Pension Service will take it into account as notional income when calculating entitlement to P/Credit.

However, when claiming HB/CTB, the deferred state pension is ignored.

In addition, I understand that the eventual lump sum may well be taxable (before you get it) depending on the individual's financial circumstances at the time. The more you start to look into this, the more complicated the implications become - advising client's on deferment of pensions may well be a minefield

.......and you thought AIP' were confusing

Very confusing indeed.

In PC cases, counting notional state pension will reduce/eliminate Guarantee Credit, but depending on the circumstances, could either reduce or increase Savings Credit!

Para 17 of HB Circular A8/2005 adds to the fun, when discussing the impact of the new rule changes on ignoring deferred state pension for HB purposes...

"Please note: The amendments will not affect HB/CTB cases with Pension Credit. Therefore, if a guarantee credit (with or without a savings credit) is in payment, you should continue to award full eligible HB/CTB. If a savings credit only is in payment, you should continue to use the Assessed Income Figure (AIF) as provided by The Pension Service."...

When clients ask me whether they should defer, I usually ask them in return "how long are you going to live?" It would appear that this response is no longer totally adequate.

Steve

Another added complication is that you can choose to defer collecting State pension at any time, not just when you hit retirement age - therefore in theory a client could be in receipt of HB/CTB and Pension credit etc based upon his state pension income - he then chooses to defer it, this affects his Pension Credits, but not his HB, as the former treats it as notional income and the latter doesn't. How volunteers in CAB's etc keep up with all this beats me.......



"Good girls go to heaven.....
bad girls go everywhere"

Meatloaf

just a note to advertise our Age Concern Information Sheet on this issue
http://www.ageconcern.org.uk/AgeConcern/information_4459.htm

alban