The State Pension Credit Pilot Scheme Regulations 2010

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision for a pilot scheme for the automatic payment of State Pension Credit. These Regulations have effect for 12 months.

Regulation 3 and the Schedule apply the State Pension Credit Act 2002 (c. 16) with modifications to an award of state pension credit made in accordance with these Regulations.

Regulation 4 provides that the only regulations made under section 1 and 5 of the Social Security Administration Act 1992 (c. 5), which provide for claims for and payment of benefit, that apply to payments under the pilot scheme are those made under these Regulations.

Regulation 5 provides that the only regulations made under the State Pension Credit Act 2002 (c. 16) that apply to payments under the pilot scheme are those made under these Regulations.

Regulations 6 to 9 make provision in respect of those persons to whom the pilot scheme applies.

• Regulation 7 provides the conditions which those selected to take part in the pilot scheme must satisfy and regulation 8 excludes certain categories of person from selection.

• Regulation 9 provides that the Secretary of State must select persons who satisfy these conditions on a random basis from those whom it appears are entitled to, but not receiving, state pension credit under the State Pension Credit Act 2002 (c. 16).

Regulation 10 provides when a person is in Great Britain for the purposes of entitlement.

Regulation 11 provides that entitlement under these Regulations starts when a person selected is notified of entitlement and continues for a period of 12 weeks.

Regulations 12, 13 and 14 make provision with respect to payment of benefit.

• Regulation 12 provides that state pension credit under these Regulations will be paid every four weeks and into the same account as the recipient’s state retirement pension.

• Regulation 13 provides for rounding of benefit amounts.

• Regulation 14 provides that state pension credit paid under these Regulations will not be taken into account for liability to tax, entitlement to a social security benefit or entitlement to a tax credit.

Regulations 15 to 21 make provision with respect to the amount of benefit.

• Regulation 15 prescribes the amount of the standard minimum guarantee.

• Regulations 16 to 18 prescribe amounts additional to the standard minimum guarantee for the purposes of the additional minimum guarantee.

• Regulation 20 prescribes amounts relevant to the savings credit, including the maximum savings credit percentage and the savings credit threshold.

• Regulation 21 deals with rounding of fractions.

Regulations 22 to 28 make provision with respect to the estimation of income and capital.

• Regulation 22 defines qualifying income for the purposes of savings credit.

• Regulation 23 defines income for the purposes of the State Pension Credit Act 2002 (c. 16).

• Regulations 24 and 25 make provision with respect to the estimation of income and regulation 26 with respect to disregards from estimated income.

• Regulation 27 makes provision with respect to the estimation of capital and regulation 28 with respect to deemed income from capital.

A full impact assessment has not been produced for this instrument as it has no impact on the private or voluntary sectors.