Old Age Means Tested
The State Pension Credit Act NI and regulations thereunder provide for means-tested benefits for persons over 60. The guarantee credit is the basic element. Habitually resident persons aged 60 years old with means below a certain level are entitled to the guaranteed credit.
There is a minimum guarantee for a single person and for couples: (£114) (£134). An additional amount may be available where a claimant or claimant’s partner receives a carer’s allowance or a severe disability premium. There are additional payments for mortgage interests in certain circumstances.
Weekly income is calculated disregarding small amounts, typically ranging from £5 to £20. Certain benefits such as child benefit, housing benefit, and bereavement payments are disregarded.
A notational income is attributed to capital. Capital below [£6,000] is disregarded, while capital above this is assessed at £1 per week per £500. The income and capital of a couple are added together and deemed attributable to the claimant.
The minimum guarantee credit is the difference between the income as calculated above and the minimum guarantee.
The savings credit
The savings credit conditions are the same as for the guarantee credit, except that the claimant or partner must be aged over 65. The purpose of the savings credit is to incentivize.
Income is income as above, except for working tax credits, incapacity benefits, contributions, job seeker’s allowance, and certain other allowances.
The savings credit threshold is the same as the basic state pension rate , £134.7(5 for a married couple). When the qualifying income is below the basic state pension rate, only the guaranteed credit applies. If it is above this amount, an additional savings amount of 60 percent of the excess, up to a maximum of £17.88 for a single person and £53.58 for a couple, is allowed.
If the income is less than the minimum guarantee, the above savings credit applies. If it is more than the minimum guaranteed credit, 40 percent of the excess is deducted, and the remainder is savings credit.
The purpose of the savings credit is to provide a small additional payment to persons with additional savings income who would otherwise be deterred by the means-test provisions.
Retirees over 65 may be entitled to the credits based on income assessed for a seven-year period without further reassessment. They are entitled to seek further payments if their income declines.
Income support is a means-tested benefit covering those outside the pension credit (under 60) and those in receipt of income support job seeker’s allowance.
Entitlement is based on the means-test. The applicant must not be in full-time work for more than 16 hours a week or have a partner working more than 24 hours a week. The maximum capital limit is (£16,000). Those in full-time education are usually excluded.
Applicants must be between 16 and 60 and satisfy the residence test, habitual residence test in Northern Ireland. Applicants must fit into one of the categories of those unable to work (other than in accordance with the above) due to sickness, disability, childcare responsibilities, or caregiving. Childcare responsibilities would be referable to a lone parent. There are additional conditions for each class of entitlement.
The income and capital of couples are considered together. Non-dependence means are not considered, although they are deemed to contribute to housing costs.
The payment is composed of personal allowance, premiums, and housing costs. Additional amounts may be attributable to persons in special circumstances.
Formerly, an additional allowance was provided for children. However, this is now allocated to the child tax credit.
The personal allowances depend on age, whether the person is a lone parent or a couple. The rates for a single person are 18 to 24 [£45.50], 25 and over [£57.45]. For a lone parent, 18 and over, £57.45; 18 and under, £34.60. For a couple over 18, £90.10; couple both under 18, £68.65.
There are premiums payable in respect of persons with disabilities, enhanced disabilities, and severe disabilities. They are paid with reference to whether the person has claimed singly or as a couple. There is also a premium for a carer.
A disability premium allowance applies when the claimant or partner is in receipt of a disability living allowance, incapacity benefits, or severe disablement allowance. The enhanced disability premium applies when claimants qualify for the top-rated disability allowance care.
The severe disability premium applies to persons obtaining attendance allowances at the middle or higher rate of the care component of the disability allowance. The claimant must not live in a household where there are non-dependents over 18.
The last element relates to housing costs. After a waiting period of up to 39 weeks, full housing costs may be paid. However, there is a limit on the loan when it is more than [£100,000]. It is for interest payments (?). Housing costs may be deemed excessive and restricted accordingly.
In relation to the housing element, non-dependent contributions are assumed in the same manner as in relation to housing benefit.
The means-test disregards the first [£6,000] of capital. For capital between £6,000 and £16,000, an income of one pound per week per £250 is assumed.
The main benefits are accounted as income. Child benefit and child tax credit, housing benefit, social fund payments, and certain other allowances are disregarded. There is a de minimis disregard of 5 or £10, as above.
Claims generally arise from the date of application provided everything is submitted within a specified period. Backdating up to three months may be allowed exceptionally.
Lone parents and others in receipt of payment support and their partners may be required to attend the work-focused interview. Those who attend without good reason may have their benefits reduced.