Housing Benefit and foreign pension backdate

Hi All,

I have a client who currently receives SRP, AA and small private pension. Based on this income there is an eligibility to PC, HB and CTS. She is an Italian national and worked there for 10 years, so is entitled to their state pension. After meeting Italy’s pension age last year she has put in a claim for their state pension in March 2020. The claim has been acknowledged but still pending decision and Ms has no idea how much she will get or when this will be awarded.

My query is, if we claim PC and HB now, then notify relevant departments when an award is made… will the backdate by counted as capital or notional income and therefore generate an overpayment?

Thanks in advance

Hi there,
Pension Credit, DWP, will not accept her claim until state pension forecast/state pension award is provided by the claimant. We’ve had a few of those cases, including British citizen who worked x years in France, Netherlands and then continued working in the UK who tried to make a claim for PC and it was turned down for the same reason.

I’m not sure I completely agree. The client is already entitled to UK State Pension, so we know they have reached SPA. The fact that they’ve also applied for an Italian State Pension doesn’t materially change their current circumstances and income - as such, they should accept and assess any claims for PC and HB accordingly, and then adjust as and when any Italian State Pension is put into payment.

They might try to argue otherwise, but I can’t see any grounds for refusing these claims on the basis that someone is waiting to hear about a benefit claim from another European country. If/when the Italian SP is awarded, then the regular payments should be taken into account as income. With respect to the back payment of the Italian SP, this will generate an overpayment of PC that is recoverable from the client, see CPAG p.1237.

I know the Pension Service have a habit of refusing to accept PC claims or saying that they can’t make a decision when one has been lodged but I’m not aware of any legislative provision that allows them to make a decision that someone isn’t entitled because they’re awaiting a decision about a benefit in another country.

Hi,

Thank you for the information. Do you know how the backdate would affect the potential housing benefit claim?

Thanks

GCH Tenancy Sustainment - 26 January 2021 03:00 PM

Hi,

Thank you for the information. Do you know how the backdate would affect the potential housing benefit claim?

Thanks

Provided they retain an entitlement to PC, then the HB award should be unaffected due to passporting.