Newsletter - Aut/Wint 05/06

Pension Credit Update

In our last newsletter, we provided a detailed introduction to the new system of Pension Credit and the fact that the new system has effectively increased the funding threshold for care to £62,290. However a number of readers assumed that this was for local authority funding, whereas the changes actually affect benefit entitlement under the system previously known as Income Support.

This new system has brought a significant amount of confusion with many of those older people who have an entitlement, either unaware of their position or unable to obtain the help they need to make a successful claim. Our article on Pension Credit has now been produced as an information bulletin and complimentary copies are available from the Helpline.

A further development which has coincided with the introduction of the new Pension Credit system relates to the payment of Attendance Allowance. It was previously the case that AA could not be paid to individuals in care, who were being funded by the local authority and in receipt of income support, even if that funding was to be subsequently repaid.

However, under changes to these regulations, the payment of income support and pension credit will no longer prevent the payment of Attendance Allowance. As a result, Attendance Allowance will be payable from 6th October 2003 to individuals in care who are in receipt of local authority funding support which will subsequently be repaid, or who are self funding in a care home owned by the local authority. As a result of these changes, the differential which existed between interim funding from the local authority and the alternative funding option from the Benefits Agency (now known as the Department for Works and Pensions), has effectively been equalised. It is important to note however, that the onus of responsibility falls to the individual to ensure that the correct benefits have been paid and if for any reason Attendance Allowance has not been correctly granted, this is likely to have a knock on effect on entitlement to other benefits.

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