IRRV Alert - week ending 6th April 2012

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Changes to Treatment of Mixed Age Households, and Localising Council Tax Support Approach - DCLG

 

 

 

 

Changes to Treatment of Mixed Age Households, and Localising Council Tax Support Approach

        • As part of the wider Welfare Reform, there will be, in the future , changes to how a household where one partner is of working age and one has reached the qualifying age for pension credit will be treated, which will have a knock-on effect on council tax reduction schemes.
        • The date of this change will be confirmed by DWP shortly (it is hoped within the month).
        • We can confirm that this change, when it happens, will apply to new claims - It will not affect those in receipt of Pension Credit at the date the change is introduced. If it ends (for example because their income lifts them out of the scope of Pension Credit) they will not be able to reclaim Pension Credit until both members have reached the Pension Credit qualifying age.

Background:

        • DWP is shortly to confirm the date of a change to the way new claimants for Pension Credit who are part of a 'mixed age' couple (one of working age and one who has reached the qualifying age for state pension credit) are treated.
        • Pension Credit: From the date of implementation (yet to be decided) it will not be possible for a couple to claim Pension Credit until both members have reached the qualifying age. These couples will though have access to Universal Credit if they meet all the other eligibility criteria.
        • Existing claims to Pension Credit: from these couples where one is working age, one of pension credit age at the point of change will be protected and they will retain Pension Credit all the time entitlement continues, once it ends (for example because their income lifts them out of the scope of Pension Credit) they will not be able to reclaim Pension Credit until both members have reached the Pension Credit qualifying age.
        • Until this new condition of entitlement for Pension Credit is introduced the existing rules will apply and ‘mixed couples’ will continue to be able to choose whether they claim a working age income related benefit (as appropriate for their circumstances) or Pension Credit.

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