Forum Home → Discussion → Universal credit migration → Thread
Pension Credit or UC
Hi - I’m currently supporting a tenant who is in receipt of ESA and HB - she is 54 years old and she claims for her partner.
Her partner will be turning 65 in September and will be getting his State Pension and a small occ pen (which is in payment now)
Just wanted to check if they will be claiming Pension Credit or UC - as they do live in a UC area.
Thanks
If it’s a “Full Service” UC area (as opposed to “live” service), then that’s what they’ll need to claim.
They can (and probably should) claim Pension Credit (PC) instead of UC as it pays more and there is no conditionality.
Don’t forget that qualfying age for PC is women’s retirement age, so he can claim from 64 years and 9 months with effect from 06.07.18, before equalising at 65 years for men and women from November.
Paul. You are correct.
I’m sure I remember at one time it was being advised that PC would not be payable until the younger partner reached Pension Age. Perhaps it was a nightmare!
Its certainly true that once UC roll-out is complete, the intention is to make mixed-age couples such as this one claim UC until they both reach pension age Benny.
But thankfully at the moment, they still have a choice between claiming PC and UC and we haven’t been able to identify any circumstances to date where a UC claim would be advantageous (that’s not to say there isn’t a possibility but we haven’t been able to think of one).
Do we have a date yet for when mixed age couples will be forced to claim UC?
Not yet…
Good afternoon
We are currently advising a couple who are in receipt of UC (FS). Client presented after being found fit for work, we have presented MR and will appeal following no change to the original decision.
However, main claimant (who was found fit for work) will reach pensionable age in a months time and will qualify for State Pension and (small) Occupational Pension with his partner being in her mid 50’s. Clients partner is his carer and claims CA, client is in receipt of PIP Std DL and Enhanced Mob.
When we model scenarios based on both Pension Credit and UC entitlements the couple are better off on PC (by a considerable amount.
As far as I can make out (but correct me if am wrong), the couple can claim PC in a UCFS area as long as they are not in receipt of UC.
Our proposed course of action would be to end the UC claim on the last day of the Assessment period, after lodging a claim for PC in advance (to minimise the administrative delays etc). PC claim to start after UC entitlement has ended.
My questions are, is this a practicable way forward, and what barriers could there be in relation to ending the UC claim and claiming PC in advance when the couple still have a live UCFS entitlement/award?
Also, whats the best way of ending a UC award, is it via journal or a JC+ visit, as client is in the all work category until we submit an SSCS1?
Nothing really to add Darren, the advance PC claim can be made up to 4 months in advance and we’ve been told by Pension Service that the transfer should happen automatically from UC to PC.
We’ve heard of people being told they must supply proof that the UC claim has been closed by Pension Service but that shouldn’t happen - if it does, please let me know, as they’ve asked for examples of this type of gatekeeping.
Because the PC claim should kick off automatically from state pension age and the advance PC claim has been lodged, the UC claim will be automatically pro-rated so you shouldn’t even need to close it. Don’t forget to make HB claim as well if relevant.
Thank you very much for this Paul. Good to know we are going in the right direction.
Cofion
Darren
Hi - I was in a position yesterday to make a claim for PC for the couple in question as Mr is turning 65 on the 28.11.18. He had not claimed his RP therefore we applied for this yesterday. However when on the phone with the Pension Service they explained to us that Mr had 2 occupational pensions - we were aware that he had one but not 2. We tried to contact the other pension company yesterday - however we now need to write to them to request that they complete a pension tracking on his records - and this could take up to 10 days!!!
Their UC assessment period runs from the 28th to the 27th of each month, and I was going to make a claim for PC as from the 28th of this month (his 65th birthday), and end his UC on the 27th. However I don’t think I can do this now as we do not have details of his 2nd occ pension.
My question is - should I proceed with the PC claim on the 28/11/18 or wait until we have all the required information to hand and make the claim on the 28/12/2018? and stop the UC as from the 27.12.18.
I do realise that his UC will be amended as from the 28.11.18 due to Mr now getting his RP and a small occ pen.
We have made a calculation and they would be much better off on PC
Thanks
[ Edited: 22 Nov 2018 at 05:03 pm by Elin_J ]Are you thinking that the availability of the second pension as notional income would be treated as a change of circumstance in UC and would not have effect until the AP beginning 28/12? Therefore, depending on the amount of it, UC for one more month might be the better buy?
I don’t think that works: I think notional income available during the month will be taken into account under UC Reg 74(3) for the AP beginning 28/11. Well it should be - that assumes the people dealing with the UC claim have heard of the concept of notional retirement pension income. But I think we have to play it with a straight bat when advising you here, so I am assuming that (1) he will tell UC that he has an occ pen available that he could draw if he wanted to and (2) they will know what to do about that. In that case, I think an immediate SPC claim on 28/11 has to be the better buy: either way, the occ pen is going to reduce his benefit £-for-£ but with SPC at least you are starting from a higher maximum amount. I appreciate you are concerned about the pension enquiry delaying SPC, so that income is disrupted in the run-up to Christmas, but the “straight bat” approach says the same applies to UC anyway.
The rest is between you and your conscience … you could decide that the best tactic is to let UC soldier on for another month, say nothing about the pension and if necessary pay back a small overpayment next year.
. ...either way, the occ pen is going to reduce his benefit £-for-£ .
Not if he’s not taking it. In UC it would ignored while in PC it would be assessed using its value based on the GAD tables and the current 15yr Gilt Rate.
[ Edited: 22 Nov 2018 at 12:08 pm by Gareth Morgan ]Reg 74(3)?
Reg 74(3)?
Oops, mind freeze; of course once he reaches SPC age the notional income rules apply but they don’t while he’s younger. The same GAD/Gilt rules apply for the amount.
Do we have a date yet for when mixed age couples will be forced to claim UC?
Not yet…
Have any further clues emerged about when this change might happen?