Business Insurance Credit

Business Insurance Credit Card, Finance Insurance Credit, Credit Card Score

Guarantee Credit

Guarantee Credit
Each part of Pension Credit – Guarantee Credit and Savings Credit – is worked out separately. Some people will get both, others just one.
This part of the guide explains how we work out the Guarantee Credit element.

Here are some
examples to show how Pension Credit works in different ways for different people. Guarantee Credit is the difference between your customer’s ‘appropriate amount’ and your customer’s income, which may include an amount of deemed income from their capital (explanation of deemed income).
Overview of how Guarantee Credit is calculated
Calculating a customer’s Guarantee Credit involves a number of steps:
1. Establish the customer’s weekly income.
2. Establish the weekly (deemed) income from any capital over the £10,000 threshold. (Deemed income from capital)
3. Make allowance for any income or capital disregards.
4. Compare the net income to the ‘appropriate amount’ for the customer.
For Guarantee Credit the payment represents the shortfall between the ‘appropriate amount’ and the net income calculated for your customer.
The sections that follow explain how Pension Credit is worked out.
They explain how:
• your customer’s income is calculated, including how earnings are calculated and income disregards are treated
• the capital element is calculated, including how capital disregards are treated
• we calculate the ‘appropriate amount’ for your customer
• the individual elements – Guarantee and Savings Credit – are arrived at
The ‘appropriate amount’

Your customer’s ‘appropriate amount’ [Reference 1] will be made up of:
• the standard amount (This is called the standard minimum guarantee in the legislation.) [Reference 2] and may also include some or all of the following extra amounts [Reference 3]:
o extra amount for severe disability
o extra amount for carers
o extra amount for housing costs (for example mortgage interest) – to cover certain accommodation costs that are not met by Housing Benefit
o transitional extra amount – for some people who were getting Income Support or income-based Jobseeker’s Allowance or income related Employment and Support Allowance before they started to get Pension Credit
The current rates for these amounts are given in the next section.
The standard amount

The standard amount is the minimum amount of money the Government has made available to support day-to-day living, including household costs such as water and fuel charges.
There are two rates of standard amount:
• £163.00 a week for single people
• £248.80 a week for couples
These rates, and those quoted in the sections that follow are the figures that apply from April 2018. Rates normally change each April and can be found in the Benefit and Pension rates leaflet.
There is also information on the standard amount for people in polygamous marriages.
[Legislation 44]
The extra amount for carers
Your customer may be able to get this extra amount of £36.00 a week if:
• they (or their partner if they have one) are getting Carer’s Allowance
• they (or their partner if they have one) has claimed Carer’s Allowance and would be getting it if they did not already have another contributory benefit paying a higher amount (we call this ‘underlying entitlement’)
If each partner satisfies either one of these conditions, the extra amount is doubled.
When Carer’s Allowance stops or underlying entitlement ceases, the Pension Credit extra amount for carers is paid for a further eight weeks. (If however Carer’s Allowance has already continued for eight weeks after the person being cared for has died, the extra amount for carers will stop immediately.)

The extra amount for severe disability
There are two rates for severe disability.
If your customer is single they may get the lower rate of £64.30 if:
• they live alone (except in certain specific circumstances) [Reference 4]; and
• they get Attendance Allowance or the middle or highest rate of the care component of Disability Living Allowance or either rate of the daily living component of Personal Independence Payment or Armed Forces Independence Payment, and
• no-one is paid Carer’s Allowance for looking after them.
If your customer has a partner they may get the higher rate of £128.60 a week if:
• they both get Attendance Allowance or the middle or highest rate of the care component of Disability Living Allowance or either rate of the daily living component of Personal Independence Payment or Armed Forces Independence Payment, and
• no-one else lives with them (except in certain specific circumstances) [Reference 4]; and
• no-one is paid Carer’s Allowance for looking after either of them.
If your customer has a partner they may get the lower rate of £64.30 a week if no-one else lives with them (except in certain specific circumstances), [Reference 4], and either:
• they both get Attendance Allowance or the middle or highest rate of Disability Living Allowance or either rate of the daily living component of Personal Independence Payment or Armed Forces Independence Payment and someone gets Carer’s Allowance for looking after one of them (but not both of them)
• one of them gets Attendance Allowance or the middle or highest rate of the care component of Disability Living Allowance or either rate of the daily living component of Personal Independence Payment or Armed Forces Independence Payment and no-one is paid Carer’s Allowance for looking after that person, and the other is blind or severely sight impaired

Updated: February 9, 2019 — 11:41 pm

Leave a Reply

Your email address will not be published. Required fields are marked *

Business İnsurance Credit © 2018 Frontier Theme