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State Pension Credit Act (Northern Ireland) 2002

Type Act of the Northern Ireland Assembly

Publication 2002-11-22

State In force

Jurisdiction Northern Ireland

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

State pension credit: entitlement and amount

Entitlement

1

(1) A social security benefit to be known as state pension credit shall be payable in accordance with the following provisions of this Act.

(2) A claimant is entitled to state pension credit if—

(a) he is in Northern Ireland;

(b) he has attained the qualifying age; and

(i) the condition in section 2(1) (guarantee credit); or

(ii) the conditions in section 3(1) and (2) (savings credit).

(3) A claimant who is entitled to state pension credit is entitled—

(a) to a guarantee credit, calculated in accordance with section 2, if he satisfies the condition in subsection (1) of that section; or

(b) to a savings credit, calculated in accordance with section 3, if he satisfies the conditions in subsections (1) and (2) of that section,

(or to both, if he satisfies both the condition mentioned in paragraph (a) and the conditions mentioned in paragraph (b)).

(4) Subsections (2) and (3) are subject to the following provisions of this Act.

(5) Regulations may make provision for the purposes of this Act—

(a) as to circumstances in which a person is to be treated as being or not being in Northern Ireland; or

(b) continuing a person's entitlement to state pension credit during periods of temporary absence from Northern Ireland.

(6) In this Act “the qualifying age” means—

(a) in the case of a woman, pensionable age; or

(b) in the case of a man, the age which is pensionable age in the case of a woman born on the same day as the man.

Guarantee credit

2

(1) The condition mentioned in section 1(2)(c)(i) is that the claimant—

(a) has no income; or

(b) has income which does not exceed the appropriate minimum guarantee.

(2) Where the claimant is entitled to a guarantee credit, then—

(a) if he has no income, the guarantee credit shall be the appropriate minimum guarantee; and

(b) if he has income, the guarantee credit shall be the difference between the appropriate minimum guarantee and his income.

(3) The appropriate minimum guarantee shall be the total of—

(a) the standard minimum guarantee; and

(b) such prescribed additional amounts as may be applicable.

(4) The standard minimum guarantee shall be a prescribed amount.

(5) The standard minimum guarantee shall be—

(a) a uniform single amount in the case of every claimant who is a member of a couple; and

(b) a lower uniform single amount in the case of every claimant who is not a member of a couple.

(6) Regulations may provide that, in prescribed cases, subsection (3) shall have effect with the substitution for the reference in paragraph (a) to the standard minimum guarantee of a reference to a prescribed amount.

(7) Where the claimant is severely disabled, there shall be included among the additional amounts prescribed under subsection (3)(b) an amount in respect of that circumstance.

(8) Where—

(a) the claimant is entitled to an allowance under section 70 of the Contributions and Benefits Act (invalid care allowance) or carer support payment; or

(b) if the claimant is a member of a couple, the other member of the couple is entitled to such an allowance or payment,

there shall be included among the additional amounts prescribed under subsection (3)(b) an amount in respect of that circumstance.

(8A) In subsection (8), “carer support payment” means the carer support payment component of carer support given in accordance with the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023.

(9) Except for the amount of the standard minimum guarantee, the powers conferred by this section to prescribe amounts include power to prescribe nil as an amount.

Savings credit

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(1) The first of the conditions mentioned in section 1(2)(c)(ii) is that the claimant—

(a) has attained pensionable age before 6 April 2016 and has attained the age of 65 (before, on or after that date), or

(b) is a member of a couple, the other member of which falls within paragraph (a).

(2) The second of the conditions mentioned in section 1(2)(c)(ii) is that—

(a) the claimant's qualifying income exceeds the savings credit threshold; and

(b) the claimant's income is such that, for the purposes of subsection (3), amount A exceeds amount B.

(3) Where the claimant is entitled to a savings credit, the amount of the savings credit shall be the amount by which amount A exceeds amount B.

(4) For the purposes of subsection (3)—

“amount A” is the smaller of—the maximum savings credit; anda prescribed percentage of the amount by which the claimant's qualifying income exceeds the savings credit threshold; and

“amount B” is—a prescribed percentage of the amount (if any) by which the claimant's income exceeds the appropriate minimum guarantee; orif there is no such excess, nil.

(5) Where, by virtue of regulations under section 2(6), the claimant's appropriate minimum guarantee does not include the standard minimum guarantee, regulations may provide that the definition of “amount B” in subsection (4) shall have effect with the substitution for the reference in paragraph (a) to the appropriate minimum guarantee of a reference to a prescribed higher amount.

(6) Regulations may make provision as to income which is, and income which is not, to be treated as qualifying income for the purposes of this section.

(7) For the purposes of this section—

“the savings credit threshold” is such amount as may be prescribed;

“the maximum savings credit” is a prescribed percentage of the difference between—the standard minimum guarantee; andthe savings credit threshold.

(8) Regulations may prescribe descriptions of persons in whose case the maximum savings credit shall be taken to be nil.

Exclusions

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(1) A claimant is not entitled to state pension credit if he is a member of a couple the other member of which is entitled to state pension credit.

(1A) A claimant is not entitled to state pension credit if he is a member of a couple the other member of which has not attained the qualifying age.

(2) In section 115(2) of the Immigration and Asylum Act 1999 (c. 33) (exclusion from benefits) after “entitled to” insert “ state pension credit under the State Pension Credit Act (Northern Ireland) 2002, or to ”.

(3) Where the amount payable by way of state pension credit would (apart from this subsection) be less than a prescribed amount, it shall not be payable except in prescribed circumstances.

Aggregation

Income and capital of claimant, spouse, etc.

5

Where the claimant is a member of a couple, the income and capital of the other member of the couple shall, except in prescribed circumstances, be treated for the purposes of this Act as income and capital of the claimant.

Retirement provision

Duty to specify assessed income period

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(1) In any case falling within subsection (3) or (4) where the relevant decision takes effect before 6 April 2016 , the Department shall, on the making of the relevant decision, specify a period as the assessed income period, unless prevented by subsection (2).

(2) The Department is prevented from specifying a period as the assessed income period under subsection (1)—

(a) if the relevant decision takes effect at a time when an assessed income period is in force in the case of the claimant by virtue of a previous application of this section; or

(b) in such other circumstances as may be prescribed.

(3) The first case is where—

(a) the Department determines the amount of a claimant's income for the purposes of a decision relating to state pension credit;

(b) the decision is a decision under Article 9(1), 10 or 11 of the 1998 Order (decisions by the Department and decisions revising or superseding decisions);

(i) the day on which the claimant attains the age of 65; or

(ii) if earlier, in a case where the claimant is a member of a couple, the day on which the other member of the couple attains that age; and

(d) the decision is not to the effect that the claimant is not entitled to state pension credit.

(4) The second case is where—

(a) the amount of the claimant's income is determined on, or for the purposes of, an appeal against a decision that the claimant is not entitled to state pension credit;

(b) on the appeal, it is decided that the claimant is entitled to state pension credit; and

(5) In this section “the relevant decision” means—

(a) so far as relating to the first case, the decision mentioned in subsection (3)(a);

(b) so far as relating to the second case, the decision on appeal mentioned in subsection (4)(b).

(6) This section is subject to section 9.

(7) This section and sections 7 to 10 shall be construed as one.

Fixing of claimant’s retirement provision for assessed income period

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(1) This section applies where, pursuant to section 6(1), the Department on the making of the relevant decision specifies a period as the assessed income period.

(2) This section has effect for the purpose of determining, as at any time in the assessed income period,—

(a) the claimant's entitlement to state pension credit; or

(b) the amount of state pension credit to which the claimant is entitled.

(3) Where the claimant's income, as determined for the purposes of the relevant decision, includes an amount (the “assessed amount”) in respect of an element of the claimant's retirement provision, the amount of that element as at any time in the assessed income period shall be taken to be the assessed amount as for the time being varied in accordance with regulations under subsection (4).

(4) The assessed amount shall be deemed, except in prescribed circumstances,—

(a) to increase; or

(b) in the case of income from capital, to increase or decrease,

on such date or dates and by such amounts as may be prescribed.

(5) Where it is determined for the purposes of the relevant decision that the claimant's income does not include any, or any further, elements of retirement provision, the claimant's income throughout the assessed income period shall be taken not to include those elements.

(6) For the purposes of this Act “retirement provision” means income of any of the following descriptions—

(a) retirement pension income, other than benefit under Part 1 of the Pensions Act (Northern Ireland) 2015 or the Contributions and Benefits Act;

(b) income from annuity contracts (other than retirement pension income);

(d) PPF periodic payments,

and an “element” of a person's retirement provision is income of any of those descriptions from a particular source.

(7) For the purposes of this section, regulations may make provision—

(a) for treating income of any particular description as income of another description; or

(b) for treating income from different sources as income from the same source.

(8) Nothing in subsections (3) to (5) prevents the revision under Article 10 of the 1998 Order of the relevant decision or of any earlier or later decision under Article 11 of that Order.

(9) This section is subject to section 8.

Fresh determination increasing claimant’s entitlement

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(1) Subsections (3) to (5) of section 7 do not prevent the making of a fresh determination as to the elements, or any of the elements, or the amount of any of the elements, of the claimant's retirement provision as at any time during the assessed income period, if—

(a) the fresh determination is for the purpose of making a decision under Article 11 of the 1998 Order ( “the new decision”);

(b) the new decision increases the amount of state pension credit to which the claimant is entitled; and

(2) The conditions in paragraphs (b) and (c) of subsection (1) shall be taken to be satisfied if—

(a) the new decision reduces the amount of state pension credit to which the claimant is entitled; but

(b) the reduction is less than it would have been apart from any fresh determination.

(3) Where a fresh determination is made by virtue of subsection (1), then, as respects the part of the assessed income period that begins with (and includes) the day on which the new decision takes effect, subsections (3) to (5) of section 7 shall have effect in accordance with the fresh determination, instead of the determination which it replaces, but as if—

(a) the fresh determination were (and the determination which it replaces were not) a determination for the purposes of the relevant decision;

(b) any assessed amount resulting from the fresh determination were not subject to variation under subsection (4) of that section at any time before the day on which the new decision takes effect; and

Duration of assessed income period

9

(1) An assessed income period shall (subject to the following subsections) be—

(a) in the case of a claimant who is under the age of 75 on the day on which the relevant decision takes effect, the period of 5 years beginning with that day;

(b) in the case of a claimant who is aged 75 or over on that day, an indefinite period beginning with that day.

(2) If the Department considers that the particulars of the claimant's retirement provision, as determined for the purposes of the relevant decision, are not likely, after taking account of any assumed variations under subsection (3), to be typical of the claimant's retirement provision throughout the period of 12 months beginning with (and including) the day on which that decision takes effect—

(a) it need not specify a period under section 6(1); and

(b) if it does so, it shall specify a period that is shorter than 5 years (but beginning as mentioned in subsection (1)).

(3) It shall be assumed for the purposes of subsection (2) that the same variations fall to be made in relation to the amount of an element of the claimant's retirement provision as determined for the purposes of the relevant decision as would fall to be made under section 7(4) if an assessed income period were to be specified in accordance with subsection (1).

(4) An assessed income period shall, except in prescribed circumstances, end at any time at which—

(a) the claimant becomes a member of a couple;

(b) the claimant ceases to be a member of a couple;

(d) in a case where the claimant is a member of a couple, the other member of the couple attains the age of 65.

(5) Regulations may prescribe further times at which, or circumstances in which, an assessed income period shall end.

(6) Where—

(a) an assessed income period is brought to an end, on or after 6 April 2009 but before 6 April 2014, by the expiry of a period of 5 years or more, and

(b) the claimant is aged 80 or over at that time,

the assessed income period shall be treated as not ending at that time but, subject to subsection (4) and provision made under subsection (5), as continuing indefinitely.

Effect of variations under section 7(4)

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(1) This section applies where—

(a) an assessed income period is in force; and

(b) there is an alteration in an element of the claimant's retirement provision which affects the computation of the amount of state pension credit to which the claimant is entitled.

(2) Where, as a result of the alteration, the amount of state pension credit to which the claimant is entitled is increased or reduced, then, as from the commencing date, the amount of state pension credit payable in the case of the claimant shall be the increased or reduced amount, without any further decision of the Department (and the award of state pension credit shall have effect accordingly).

(3) Where, notwithstanding the alteration, the claimant continues on and after the commencing date to be entitled to the same amount of state pension credit as before, the award shall continue in force accordingly.

(4) In this section—

“alteration” means a variation in the amount of an element of the claimant's retirement provision in accordance with regulations under section 7(4);

“commencing date”, in relation to an alteration, means the date on which the alteration comes into force.

Miscellaneous and supplementary

Administration

11

Schedule 1 shall have effect and in that Schedule—

(a) Part I makes amendments to Part I of the Administration Act (claims for, and payments and general administration of, benefit);

(b) Part II makes amendments to Part II of the 1998 Order (decisions and appeals); and

Polygamous marriages

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(1) This section applies to any case where—

(a) a person ( “the person in question”) is a husband or wife by virtue of a marriage entered into under a law which permits polygamy;

(b) either party to the marriage has for the time being any spouse additional to the other party; and

(2) Regulations under this section may make provision—

(a) as to the entitlement of the person in question to state pension credit;

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