The State Pension Credit Regulations 2002

Regulation 17(7)

SCHEDULE IV AMOUNTS TO BE DISREGARDED IN THE CALCULATION OF INCOME OTHER THAN EARNINGS

1.  In addition to any sum which falls to be disregarded in accordance with paragraphs 3 to 6, £10 of any of the following, namely—

(a) a war disablement pension (except insofar as such a pension falls to be disregarded under paragraph 2 or 3);

(b) a war widow’s or war widower’s pension;

(c) a pension payable to a person as a widow [F1 or widower] under the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 M1 insofar as that Order is made under the Naval and Marine Pay and Pensions Act 1865 M2 or the Pensions and Yeomanry Pay Act 1884 M3 , or is made only under section 12(1) of the Social Security (Miscellaneous Provisions) Act 1977 M4 and any power of Her Majesty otherwise than under an enactment to make provision about pensions for or in respect of persons who have been disabled or have died in consequence of service as members of the armed forces of the Crown;

[F2 (cc) a guaranteed income payment;]

(d) a payment made to compensate for the non-payment of such a pension [F3 or payment] as is mentioned in any of the preceding sub-paragraphs;

(e) a pension paid by the government of a country outside Great Britain which is analogous to any of the [F4 pensions or payments mentioned in sub-paragraphs (a) to (cc) above];

(f) a pension paid to victims of National Socialist persecution under any special provision made by the law of the Federal Republic of Germany, or any part of it, or of the Republic of Austria.

Textual Amendments

F1 Words in Sch. IV para. 1(c) inserted (6.10.2003) by The State Pension Credit (Transitional and Miscellaneous Provisions) Amendment Regulations 2003 (S.I. 2003/2274), regs. 1, 2(11)(a)

F2 Sch. IV para. 1(cc) inserted (4.4.2005) by The Social Security (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/574), regs. 1(1), 2(7)(a)(8)(d)

F3 Words in Sch. IV para. 1(d) inserted (4.4.2005) by The Social Security (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/574), regs. 1(1), 2(7)(b)(8)(d)

F4 Words in Sch. IV para. 1(e) substituted (4.4.2005) by The Social Security (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/574), regs. 1(1), 2(7)(c)(8)(d)

Marginal Citations

M1 S.I.1983/883.

M2 1865 c. 73.

M3 47 & 48 Vict. c. 55.

M4 1977 c. 5.

2.  The whole of any amount included in a pension to which paragraph 1 relates in respect of—

(a) the claimant’s need for constant attendance;

(b) the claimant’s exceptionally severe disablement.

3.  Any mobility supplement under article 26A of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 (including such a supplement by virtue of any other scheme or order) or under article 25A of the Personal Injuries (Civilians) Scheme 1983 M5 or any payment intended to compensate for the non-payment of such a supplement.

Marginal Citations

M5 S.I. 1983/686; amended by S.I. 1983/1164 and 1540 and 1986/628.

4.  Any supplementary pension under article 29(1A) of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 (pensions to widows [F5 or widowers]).

Textual Amendments

F5 Words in Sch. IV para. 4 inserted (6.10.2003) by The State Pension Credit (Transitional and Miscellaneous Provisions) Amendment Regulations 2003 (S.I. 2003/2274), regs. 1, 2(11)(b)

5.  In the case of a pension awarded at the supplementary rate under article 27(3) of the Personal Injuries (Civilians) Scheme 1983 M6 (pensions to widows [F6 or widowers]), the sum specified in paragraph 1(c) of Schedule 4 to that Scheme.

Textual Amendments

F6 Words in Sch. IV para. 5 inserted (6.10.2003) by The State Pension Credit (Transitional and Miscellaneous Provisions) Amendment Regulations 2003 (S.I. 2003/2274), regs. 1, 2(11)(c)

Marginal Citations

M6 S.I.1983/686; the relevant amending Instruments are S.I.1994/715 and 2021.

6.—(1) Any payment which is—

(a) made under any of the Dispensing Instruments to a widow [F7 or widower] of a person—

(i) whose death was attributable to service in a capacity analogous to service as a member of the armed forces of the Crown; and

(ii) whose service in such capacity terminated before 31st March 1973; and

(b) equal to the amount specified in article 29(1A) of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983 (pensions to widows [F8 and widowers]).

(2) In this paragraph “the Dispensing Instruments” means the Order in Council of 19th December 1881, the Royal Warrant of 27th October 1884 and the Order by His Majesty of 14th January 1922 (exceptional grants of pay, non-effective pay and allowances).

Textual Amendments

F7 Words in Sch. IV para. 6(1)(a) inserted (6.10.2003) by The State Pension Credit (Transitional and Miscellaneous Provisions) Amendment Regulations 2003 (S.I. 2003/2274), regs. 1, 2(11)(d)

F8 Words in Sch. IV para. 6(1)(b) inserted (6.10.2003) by The State Pension Credit (Transitional and Miscellaneous Provisions) Amendment Regulations 2003 (S.I. 2003/2274), regs. 1, 2(11)(e)

7.  £10 of any widowed parent’s allowance to which the claimant is entitled under section 39A of the 1992 Act M7 .

Marginal Citations

M7 Section 39A was inserted by section 55 of the Welfare Reform and Pensions Act 1999 (c. 30).

[F9 7A.   £10 of any widowed mother’s allowance to which the claimant is entitled under section 37 of the 1992 Act.]

Textual Amendments

F9 Sch. IV para. 7A inserted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 (S.I. 2002/3197), reg. 1(1)(b), Sch. para. 11(a)

8.—(1) Where the claimant occupies a dwelling as his home and he provides in that dwelling board and lodging accommodation, an amount, in respect of each person for whom such accommodation is provided for the whole or any part of a week, equal to—

(a) where the aggregate of any payments made in respect of any one week in respect of such accommodation provided to such person does not exceed £20.00, 100% of such payments; or

(b) where the aggregate of any such payments exceeds £20.00, £20.00 and 50% of the excess over £20.00.

F10 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F10 Sch. IV para. 8(2) omitted (3.10.2005) by virtue of The Social Security (Miscellaneous Amendments) (No. 2) Regulations 2005 (S.I. 2005/2465), regs. 1(2), 6(5)

9.  If the claimant—

(a) owns the freehold or leasehold interest in any property or is a tenant of any property; and

(b) occupies a part of that property; and

(c) has an agreement with another person allowing that person to occupy another part of that property on payment of rent and—

(i) the amount paid by that person is less than £20 per week, the whole of that amount; or

(ii) the amount paid is £20 or more per week, £20.

10.  Where a claimant receives income under an annuity purchased with a loan, which satisfies the following conditions—

(a) that the loan was made as part of a scheme under which not less than 90% of the proceeds of the loan were applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons (in this paragraph referred to as “the annuitants”) who include the person to whom the loan was made;

(b) that at the time the loan was made the person to whom it was made or each of the annuitants had attained the age of 65;

(c) that the loan was secured on a dwelling in Great Britain and the person to whom the loan was made or one of the annuitants owns an estate or interest in that dwelling;

(d) that the person to whom the loan was made or one of the annuitants occupies the dwelling on which it was secured as his home at the time the interest is paid; and

(e) that the interest payable on the loan is paid by the person to whom the loan was made or by one of the annuitants,

the amount, calculated on a weekly basis, equal to—

(i) where, or insofar as, section 369 of the Income and Corporation Taxes Act 1988 M8 (mortgage interest payable under deduction of tax) applies to the payments of interest on the loan, the interest which is payable after deduction of a sum equal to income tax on such payments at the applicable percentage of income tax within the meaning of section 369(1A) of that Act;

(ii) in any other case the interest which is payable on the loan without deduction of such a sum.

Marginal Citations

M8 1988 c. 1; subsection (1A) was inserted by the Finance Act 1994 (c. 9), section 81(3).

11.—(1) Any payment, other than a payment to which sub-paragraph (2) applies, made to the claimant by Trustees in exercise of a discretion exercisable by them.

(2) This sub-paragraph applies to payments made to the claimant by Trustees in exercise of a discretion exercisable by them for the purpose of—

(a) obtaining food, ordinary clothing or footwear or household fuel;

(b) the payment of rent, council tax or water charges for which that claimant or his partner is liable;

(c) meeting housing costs of a kind specified in Schedule 2;

F11 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In a case to which sub-paragraph (2) applies, £20 or—

(a) if the payment is less than £20, the whole payment; or

(b) if, in the claimant’s case, £10 is disregarded in accordance with paragraph 1(a) to (f), [F12 or paragraph 7 [F13 or 7A]] £10 or the whole payment if it is less than £10.

(4) For the purposes of this paragraph—

“ordinary clothing and footwear” means clothing or footwear for normal daily use, but does not include school uniforms, or clothing and footwear used solely for sporting activities; and

“rent” means eligible rent for the purposes of the Housing Benefit (General) Regulations 1987 M9 less any deductions in respect of non-dependants which fall to be made under regulation 63 (non-dependant deductions) of those Regulations.

Textual Amendments

F11 Sch. IV para. 11(2)(d) omitted (6.10.2003) by virtue of The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) Regulations 2002 (S.I. 2002/3019), regs. 1(2)(b), 23(n)(i)

F12 Words in Sch. IV para. 11(3)(b) inserted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) Regulations 2002 (S.I. 2002/3019), regs. 1(2)(b), 23(n)(ii)

F13 Words in Sch. IV para. 11(3)(b) inserted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 (S.I. 2002/3197), reg. 1(1)(b), Sch. para. 11(b)

Marginal Citations

M9 S.I. 1987/1971;see regulations 2(1) and 10.

12.  Any increase in pension under Part IV of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 M10 paid in respect of a dependent other than the pensioner’s spouse.

Marginal Citations

M10 S.I.1983/883.

13.  Any payment ordered by a court to be made to the claimant or the claimant’s partner in consequence of any accident, injury or disease suffered by [F14 the person] to whom the payments are made.

Textual Amendments

F14 Words in Sch. IV para. 13 substituted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 (S.I. 2002/3197), reg. 1(1)(b), Sch. para. 11(c)

14.  Periodic payments made to the claimant or the claimant’s partner under an agreement entered into in F15 ... settlement of a claim made by [F16 that person] for an injury suffered by him.

Textual Amendments

F15 Word in Sch. IV para. 14 omitted (6.10.2003) by virtue of The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 (S.I. 2002/3197), reg. 1(1)(b), Sch. para. 11(d)(i)

F16 Words in Sch. IV para. 14 substituted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 (S.I. 2002/3197), reg. 1(1)(b), Sch. para. 11(d)(ii)

15.  Any income which is payable outside the United Kingdom for such period during which there is a prohibition against the transfer to the United Kingdom of that income.

16.  Any banking charges or commission payable in converting to Sterling payments of income made in a currency other than Sterling.

[F17 17.   Any special war widows payment made under—

(a) the Naval and Marine Pay and Pensions (Special War Widows Payment) Order 1990 made under section 3 of the Naval and Marine Pay and Pensions Act 1865;

(b) the Royal Warrant dated 19th February 1990 amending the Schedule to the Army Pensions Warrant 1977;

(c) the Queen’s Order dated 26th February 1990 made under section 2 of the Air Force (Constitution) Act 1917;

(d) the Home Guard War Widows Special Payments Regulations 1990 made under section 151 of the Reserve Forces Act 1980;

(e) the Orders dated 19th February 1990 amending Orders made on 12th December 1980 concerning the Ulster Defence Regiment made in each case under section 140 of the Reserve Forces Act 1980,

and any analogous payment made by the Secretary of State for Defence to any person who is not a person entitled under the provisions mentioned in sub-paragraphs (a) to (e) of this paragraph.

Textual Amendments

F17 Sch. IV paras. 17, 18 added (6.10.2003) by The State Pension Credit (Transitional and Miscellaneous Provisions) Amendment Regulations 2003 (S.I. 2003/2274), regs. 1, 2(11)(f)

18.   Except in the case of income from capital specified in Part II of Schedule V, any actual income from capital.]

Textual Amendments

F17 Sch. IV paras. 17, 18 added (6.10.2003) by The State Pension Credit (Transitional and Miscellaneous Provisions) Amendment Regulations 2003 (S.I. 2003/2274), regs. 1, 2(11)(f)