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staff-016: Given these inputs what is the formula for calculating Pension Credit?

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source-c012: DMG Vol 13 Ch 77: Conditions of entitlement, membership of the household and normal amount payable — PDF page 33

Official source · Exact excerpt and hashes

Guarantee Credit and Savings Credit calculation inputs are distinct; no formula executable from this isolated page.

77303 If there are


1. any additions to the SMG, the total amount of GC will be the appropriate minimum guarantee (AMG)


2. no additions to the SMG, the SMG will be the AMG and the total amount of GC will be the amount of
the AMG


less any income relevant to the SPC income assessment. See DMG 77330 et seq for guidance on how to
work out the amount of GC payable.




Savings credit
77304 The amount of SC depends on1


1. the level of the claimant’s income and


2. the amount of the


      2.1 claimant’s qualifying income (QI) and


      2.2 savings credit threshold (SCT) and


      2.3 AMG and


      2.4 maximum savings credit (MSC).


See DMG 77353 et seq for guidance on how to work out the amount of SC payable.


                                                                                      1 SPC Act 02, s 3


77305 - 77329

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source-c013: DMG Vol 13 Ch 77: Conditions of entitlement, membership of the household and normal amount payable — PDF page 35

Official source · Exact excerpt and hashes

Additional-amount categories and amount route; historical example amounts are not current rates.

77333 The AMG1 is the total of


1. the SMG and


2. any additional amounts that may be applicable for


        2.1 the severely disabled


        2.2 carers


        2.3 former claimants of IS/JSA(IB)


        2.4 housing costs


        2.5 additional amount for a child or qualifying young person.


Note: See DMG Chapter 78 for guidance on special groups.


                                                                                         1 SPC Act 02, s 2(3)


Example


Bleddyn, who is aged 65, lives with his partner Cerys in a house on which they liable to pay service
charges. Cerys’ elderly father lives with them and Cerys is entitled to CA for looking after him. The SMG
for Bleddyn is £160.95 and an additional amount of £25.55 is applicable because Cerys is a carer. An
additional amount of £46 is also applicable for housing costs. The AMG is £232.50 (£160.95 + £25.55 +
£46).



Amount payable

77334 Where the claimant is entitled to a GC, the amount payable is 1


1. if the claimant has no income, the amount of the AMG and


2. if the claimant has income that does not exceed the AMG, the difference between the AMG and the

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source-c031: DMG Vol 14 Ch 84: Deemed weekly income from capital — PDF page 128

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Deemed-income mechanism and combined partner capital; valuation, disregards and notional capital need other passages.

84911 The amount of deemed weekly income from capital is £1


1. for each £500 over £10,000 and


2. for any capital which is left and which is not a complete £500 1.


                                                                  1 SPC Act 02, s 15(2) & SPC Regs, reg 15(6)


84912 - 84920



How to work out the amount of deemed weekly income

Total amount of capital
84921 The total amount of capital each person has is the total of the value of each item of actual capital
and notional capital that person has. The total amount of capital of claimants is


1. the total amount of their capital if they do not have a partner or


2. the total amount of their capital and the total amount of their partner’s capital if they have a partner 1.


                                                       1 SPC Regs, s 5 & s 12(2)(d) & reg 8 & Sch III, para 1(4)


When does income become capital
84922 Where a claimant receives income, at a certain point that income becomes capital. This point is
reached when the period for which the income is paid has expired. So the DM should have regard to

receipts of income when calculating tariff income deemed to be generated from a claimant’s capital 1.


Example


Bill submits a claim for SPC on 21 August. He provides a bank statement dated 18 August showing a
balance of £12,335.46. If tariff income were calculated on this amount it would be £5.00 per week. Bill
also receives RP of £415.63 which is paid four weekly directly into this bank account. He last received a

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source-c032: DMG Vol 14 Ch 85: Income other than earnings — PDF page 30

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Named income types; exclusions, disregards and relevant variants require linked evidence.

85091 When calculating income other than earnings the DM has to take


1. Annuity income(except those annuities listed at DMG 85171)


2. Armed forces death in service awards


3. BA


4. CA


5. ESA(Cont)


6. IB


7. IIDB


8. Certain types of income from capital


9. Inherited royalties/copyright payments


10. JSA(Cont)


11. MA


12. Maintenance payments for the claimant or partner


13. PB and MDB scheme


14. Retirement pension income (including increases for adult dependants) (see DMG 85130 et seq)


15. SDA


16. State Pension


17. War orphan's pension


18. WP

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