Changes to benefits for pensioners from 6th Oct 03

Pension Credit is a new entitlement for people aged 60 or over that came into operation from the 6th October 2003

Pension Credit is being introduced to:

- Combat poverty amongst today’s pensioners
- Reward Pensioners who have made modest provisions for their retirement
- Ensure people aged 60 or over take their entitlement to financial help by making it easier for them to apply.

How will pension credit affect your housing and/or council tax benefit?
If you already receive Minimum Income Guarantee you need do nothing as the Department for Works and Pensions has automatically converted your claim to the Guarantee Credit. Your Housing and/or Council Tax benefit claim has been amended to reflect these changes. You will continue to receive Maximum Housing and/or Council Tax benefit.

If you get Savings Credit and you are already getting Housing and/or Council Tax benefit the Department for Works and Pensions has sent us your Assessed Income Figure (total income) along with a breakdown of your income. Your Housing and/or Council Tax claim will be recalculated using this amount and we will write and tell you if there is a change to your benefit.

Do you have non-dependants in your household?
The rules have changed about Non Dependants in your household if you or your partner, if you have one, are aged 65 or over. Non-dependants are normally adult relatives that live with you.

If you are already receiving Housing and/or Council Tax benefit and a non dependant joins your household after 6th October 2003 we will ignore their income for 26 weeks which means your entitlement will not be affected for this period.

If you are already receiving Housing and/or Council Tax benefit and currently have a non dependant(s) residing with you, if their income changes which will result in a decrease in your entitlement after 6th October 2003, we will ignore their change in income for 26 weeks. If either of the above is relevant, you must still notify us of these changes.

Do you have a sub tenant?
If you have a sub tenant at your property we can now disregard £20.00 of income you receive from each sub tenant.

Changes to your capital
We still ignore any Capital you hold below £6,000. Under the new rules we now assume £1 per week as income for each £500 you have over £6,000. This is more generous than the old rules as it used to be £1 for every £250 so you may now qualify for additional help with Housing and/or Council Tax benefit. If this is the case we will write to you and tell you how much you will be getting.

The benefits of pension credit
If you receive Housing and/or Council Tax benefit because you receive Pension Credit, you will only need to tell us of any changes listed below. This means if your circumstances stay the same, there will be no need for you to complete unnecessary forms every year.

Changes you must tell us about
The majority of changes in your circumstances must be reported to the Pensions Service. Please see the guidance issued with your entitlement letter from the Pensions Service for details of these.

You must, however, tell us immediately if you have any of the following changes:

If you receive an amount of Guarantee Credit you must tell us if you have:

- Changes to your tenancy (such as a rent increase)
- Changes to Non-Dependants
- Any absence from home if it is likely to exceed 13 weeks

If you receive Savings Credit only you must tell us if you have:
- Changes to your Tenancy
- Any absence from home if it is likely to exceed 13 weeks
- Changes to Dependant children
- Changes to the Household composition and Non-Dependants
- Changes to Child Tax Credit
- Changes to Child Benefit
- Capital Exceeding £16,000
- Changes to the income and capital of partners not included in the Pension Credit claim

If you are not receiving pension credit, how do you apply?
It’s easy, contact the Pension Credit Advice line on 0800 99 1234 and they will complete an application with you over the telephone. The completed application will be posted to you for your signature. When you apply for the Pension Credits you will need to tell them that you would like to apply for Housing and/or Council Tax benefit if you do not already get it. An application form called HCTB1 will then be issued to you for completion. You must return the completed application to us and we will tell you of any entitlement.

If you have any queries about Housing and/or Council Tax benefit only, contact us.

Last Updated: 27 December 04,
Review Date: 20 September 2005