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Changes to Pension Credit due April 2013
This change is due to come into effect in April 2013
If in a couple there is a younger partner then both partners must wait until they have both reached the qualifing age for Pension Credit
There is a disproportional amount of “extra years” a person of Pensionable Age will have to serve until the pension age between men and women have equalised.
Example
If the Pension age is at 66 years for both men and women –Older person 66 years old with partner person 3 years younger – older person must wait until they reach 69 – waiting time 3 years.
Equal to the difference in age between the ages of the couple
BUT
At the moment Pensionable Age is rising to equalise both men and women at 66 by 2018. This creates in the above case an additional 4 ¼ years waiting period
Difference between ages 3 years – extra years to Pension Qualifying Age 7 ¼ years.
Both partners will be classed as “Working Age” within UC and the partner who has reached the qualifing age for PC will lose any pension related benefits
At the moment Capital limits are different for the Working Age claimants and PC claimants.
At the moment it is unknown how conditionality and sanctions will effect the older partner
If this comes into force April 2013, anyone over pensionable age who wishes to work (on low income) will be eligable for WTC and will therefore have conditionality under both systems - WTC and UC
If you have any clients please encourage them to contact their MP’s as very few of them have any knowledge of this change.
There are a whole lot more changes to benefits for older people on their way. Some consequential on the abolition of HB and CTC and some less tightly linked, such as the introduction of a capital limit.
The ‘mixed-age couples’ rule, and other big changes to Pensions Credit and older peoples Council Tax Support, will have a pile of consequential effects which I’ve talked about a lot in various sessions and courses.
My core message is - start older peoples take-up campaigns now and forget the usual target areas. Don’t focus on inner-city estates; instead aim for home owners in the leafy suburbs and in rural villages.
I thought these changes were coming in October 2013, as part of the start of Universal Credit. Have i got that wrong?
From Hansard; it’s the last paragraph
Ann Coffey: To ask the Secretary of State for Work and Pensions whether one or both of a couple in receipt of housing benefit have to have reached the pension credit qualifying age in order to be exempt from the new under-occupancy rules to be introduced in 2013.
Steve Webb: The under occupation measure in the social rented sector applies to those of working age. For couples currently claiming housing benefit, both the claimant and their partner need to be under the, qualifying age for pension credit to be treated as working age. When universal credit is introduced, if either member in a couple is under the qualifying age for pension credit then the couple would be treated as working age. They would then be expected to access universal credit rather than pension credit.
It is intended that those already in receipt of pension credit at April 2013 will be protected, and continue to receive pension credit as long as they continue to meet the other qualifying conditions.
HC Deb 29 February 2012 c393W
As HB is being abolished, once UC migration is completed, that would only be a short term fix. Very short term if new HB claims stop post Oct 2013.
From Hansard; it’s the last paragraph
Ann Coffey: To ask the Secretary of State for Work and Pensions whether one or both of a couple in receipt of housing benefit have to have reached the pension credit qualifying age in order to be exempt from the new under-occupancy rules to be introduced in 2013.
Steve Webb: The under occupation measure in the social rented sector applies to those of working age. For couples currently claiming housing benefit, both the claimant and their partner need to be under the, qualifying age for pension credit to be treated as working age. When universal credit is introduced, if either member in a couple is under the qualifying age for pension credit then the couple would be treated as working age. They would then be expected to access universal credit rather than pension credit.
It is intended that those already in receipt of pension credit at April 2013 will be protected, and continue to receive pension credit as long as they continue to meet the other qualifying conditions.
HC Deb 29 February 2012 c393W
This change is Schedule 2 para 64 WRA 2012.
From the WRB Explanatory note to Sched 2 para 64 (145)
“This is to ensure that all claimants who have not attained the qualifying age for state pension credit are required to claim universal credit…”
Clearly that would be an impossible objective if para 64 is commenced prior to Oct 2013.
So isn’t it just as likely that Webb was (carelessly) thinking of the context of the original question (the HB under-occ rules from April 2013) rather than actually setting out the timetable for the PC change?
This change is Schedule 2 para 64 WRA 2012.
From the WRB Explanatory note to Sched 2 para 64 (145)
“This is to ensure that all claimants who have not attained the qualifying age for state pension credit are required to claim universal credit…”
Clearly that would be an impossible objective if para 64 is commenced prior to Oct 2013.
So isn’t it just as likely that Webb was (carelessly) thinking of the context of the original question (the HB under-occ rules from April 2013) rather than actually setting out the timetable for the PC change?
Para 64 stops mixed-age couples claiming Pension Credit so, dependant upon when it is brought into force, it just pushes people onto whatever working age benefits exist at the time. It may be that they want to do that earlier to stop multiple confusion in October 2013. There are a good number of mixed-age couples currently claiming working age benefits and they may, heaven forfend, even want to stop them transferring at the last minute.
I’m just speculating here but I’ve seen lots of other references to April 2013 as the operative date, although they may all descend from the same mistake, but it is a written answer not an oral one so it will have been carefully prepared.
I’m just speculating here but I’ve seen lots of other references to April 2013 as the operative date, although they may all descend from the same mistake, but it is a written answer not an oral one so it will have been carefully prepared.
Could be either - I’ve not seen anything that can’t be traced back to Webb’s answer.
Unsurprisingly - when defending para 64 in committee - the minister referred only UC as the working age alternative.
It seems unnecessarily messy forcing claimants onto JSA(IB),etc and then having them shunted onto UC later on; then again, the situation is already very messy.
From the point of view of CTS/PT2 April ‘13 might make more sense but as far as I know DCLG have given no clues about the boundary for pensioner CTS.
Indeed so. It would be as messy as taking couples working between 16 hours and 24 hours off benefits when they’d go back on again with UC.
It’s a Rumsfeld - 2.
I have just checked the Act commencement section and the only two Commencement Orders that have been made so far. None of them covers Schedule 2, so as yet no date has been appointed for its coming into force.
There are a few clues about PC in the DCLG Statement of Intent for Council Tax Support that’s just been published.
“Other matters – pension credit age and default schemes
Department for Work and Pensions changes to state pension credit age qualifying criteria
4.138
The Department for Work and Pensions is set to make changes to the way in which new applicant couples of mixed age (where one member of the couple has attained state pension credit qualifying age and one has not) are treated for new applications shortly. Currently such couples would be treated under pension credit age regulations, bar certain exceptions (set out, for example, at paragraph 4.11).
4.139
We expect this new measure to be implemented by the Department for Work and Pensions at some point in the next two years, and to apply to new pension credit applications only. It is likely to mean that in future (from the point of change and for new applicants only) it will not be possible for a couple to claim pension credit until both members have reached the qualifying age. It is expected that these couples will, though, have access to Universal Credit if they meet all the other eligibility criteria.
4.140
We intend to align with this change for new applicants on the same basis once it takes effect, so that local authorities do not find themselves defining an individual in a mixed age couple differently from the way they are defined by the Department for Work and Pensions, and so that any information received from the Department for Work and Pensions on assessments relating to that individual continues to make sense for means-testing purposes.
4.141
Government’s intention is that those mixed age couples already applying for or receiving a pension-credit age council tax reduction at the point of change (whether or not they are also receiving pension credit), will retain pension-credit age council tax reduction whilst their entitlement continues.
4.142
Depending on when the change takes place we would either seek to incorporate this into the new draft regulations to become effective at the point of change for new applicants or (if the change takes place later) amend regulations in due course to take this into account.
Wider welfare changes to benefits – particularly Universal Credit
4.143
The Government intends to reflect any relevant changes to the welfare and benefits system in regulations governing the default scheme and protection for those of pension credit age, either at the outset or by amending regulations as and when necessary. In particular, it is intended that Universal Credit will be introduced for some new and existing claimants from October 2013.
4.144
A number of benefits and tax credits (income support, income-related jobseeker’s allowance, income-related employment and support allowance, housing benefit, working tax credit and child tax credit) are expected to be incorporated within Universal Credit.
4.145
Where these are mentioned in the existing council tax benefit pension-credit age regulations and working-age council tax benefit regulations (SI 2006/216 and SI 2006/215) an equivalent consideration for Universal Credit will be identified. In addition, starting at the earliest in October 2014, support for eligible rent for customers over pension credit qualifying age may be provided through a new component of pension credit called housing credit. The Department for Communities and Local Government is working closely with the Department for Work and Pensions to determine the precise nature of such considerations and potential amendments.”
I am interested if anyone can shed some light on this paragraph from a letter I received a few days ago,
“You may be aware that the Chancellor recently announced that the State Pension reforms will deliver a single tier pension that will help to tackle inequalities in the system for groups such as women, the low paid and the self-employed. The reforms will be introduced early in the next Parliament.
The State Pension Credit Act 2002 provides for the minimum qualifying age for the Guarantee Credit to move up in line with the change to women’s State Pension age.
The qualifying age was aligned with women’s State Pension age to avoid inequalities between men and women in line with the European EU Directive 79/7, which prohibits unequal treatment in matters of social security. This follows on from the pensioner premiums within Income Support which have always been payable to men and women from the State Pension age for women”
http://europa.eu/legislation_summaries/employment_and_social_policy/equality_between_men_and_women/c10907_en.htm
The Statutory Social Security Directive
Directive 79/7/EC on the progressive implementation of the principle of equal treatment between men and women in matters of social security.
The scope of Directive 79/7/EC covers individuals in cases of sickness, invalidity, old age, industrial accidents and unemployment. No discrimination on ground of sex, either directly or indirectly by reference in particular to family or marital status, may occur concerning the conditions of access to these schemes. The Directive applies to the entire working population including self-employed persons, retired and disabled workers
Does this in fact mean that the only reason that men have the same PC age as women is because that would fall foul of this Directive? Would the change to PC rules re mixed aged couples also fall foul of this?
[ Edited: 19 May 2012 at 04:31 pm by RMR ]http://www.dwp.gov.uk/docs/dmgch0701.pdf
equal treatment directives
I first contacted Steve Webb, Pensions Minister through my MP back on 14 May 2012 with my concerns re my initial posting. Gradually, over time as regs were published, most of my questions were answered. In October he replied to may question re complying with EU regs and Human Rights, which I will happily share with. “The Department is content that we have taken measures to comply with Directive 79/7/EC and the European Convention on Human Rights” So there you have it
Hypothetical Question from DWP
We would like to know how much you have in savings?
Answer: I am content that my savings fall with DWP guidelines and limits
Result: Stopped Benefit due to insufficient information
My only outstanding question still remaining is of course my request for information re financial assistance for those adversely affected until pension ages for men and women are equalized.
Two weeks ago, for the fourth time, my MP has submitted this question, this time I have worded it:
“When Universal Credit is introduced, where mixed aged couples will not be able to claim Pension Credit or Pensioner Benefits until both are of Pension Age, will the Government be financially helping couples where there is more waiting time for these benefits than the difference in their ages. YES/NO*
*please delete as appropriate”
I’m starting to wonder how much it is costing not to give me an answer!
In November 2011 AgeUK published these figures ( referenced Hansard 8th Nov)
There are currently over 93.000 couples receiving PC where one partner is aged below 60 - about 15% of couples receiving PC. In addition there are some 7.300 receiving IS or JSA where one is over the age of 60.
I now have a blog which I started this weekend. It is my personal view of the state of the UK in 2013, after all the changes to Welfare Benefits
I am trying to draw on articles from different areas of Welfare Benefit changes that have been sent to me and my own research.
http://mzolobajluk.wordpress.com/
Hello I am a bit confused as we had a meeting in the local council and I was told that the change to Pension Credit will happen after October 2014.
Is that correct?
Thank you
There are a lot of changes to Pension Credit coming down the road.
The changes introducing Housing Credit and, I think, children will be what’s being called Pension Credit Plus. That’s expected in October 2014.
Then there’ll be Pension Credit ST following the introduction of single-tier pensions in 2017.
That will give us two different schemes running at the same time (rather like UC and current scheme benefits) becuse PCST won’t have Savings Credit, except for a five year period when the part attributable to housing will still exist.
BUT… before the PCP date there will be a cut-off date for mixed age couples when they will lose entitlement to make a claim for PC and be put onto UC or JSA etc. instead. There’s still no definitive date AFAIK for that.
There are also other changes taking place as part of normal amendments / uprating procedures. SPC is being reduced again in April, the changes to Carers Addition may be introduced soon. We don’t know when WTC stops being claimable for those over QASPC, etc. etc.
There are a lot of changes to Pension Credit coming down the road.
The changes introducing Housing Credit and, I think, children will be what’s being called Pension Credit Plus. That’s expected in October 2014.
Then there’ll be Pension Credit ST following the introduction of single-tier pensions in 2017.
That will give us two different schemes running at the same time (rather like UC and current scheme benefits) becuse PCST won’t have Savings Credit, except for a five year period when the part attributable to housing will still exist.
BUT… before the PCP date there will be a cut-off date for mixed age couples when they will lose entitlement to make a claim for PC and be put onto UC or JSA etc. instead. There’s still no definitive date AFAIK for that.
There are also other changes taking place as part of normal amendments / uprating procedures. SPC is being reduced again in April, the changes to Carers Addition may be introduced soon. We don’t know when WTC stops being claimable for those over QASPC, etc. etc.
Thank you so much you blew me away and sent me reading more now:) Thanks
Have named this wonderful piece of legislation “The Toy Boy Tax ” for Pensioners cos the additional waiting period only affects older women with a younger partner. It doesn’t affect same sex couples of older men with a younger female partner. That’ll teach them.
I still don’t know why there hasn’t been a challenge over this.
Worry is though that when UC gets ironed out, are they going to transfer those over to UC who only qualified for PC cos UC was late? - signs are that they are thinking about it. Lots of confusion still.