The claims process
21.In the current Income Support system all income, regardless of source, and most personal circumstances have to be reported and there is a continuing obligation to report changes as they occur. The Department's research (DSS Research Report No.100, ‘Overcoming Barriers: Older People and Income Support' - copies are available at http://www.dwp.gov.uk) has shown that these and other requirements create a claims and administration process which, for pensioners, can act as a significant deterrent in claiming entitlement. Various features of Pension Credit should reduce the deterrents.
22.The requirement to report changes in personal circumstances as they occur will be changed for those aged 65 and over. The Act introduces an assessed income period which will normally run for five years. During this time there will be no requirement to report changes in income from any retirement provision that a pensioner has made although benefit upratings and changes in income from private pension will be taken into account as they occur. In the main, only those types of changes that must be notified for basic state pension purposes will need to be reported. These include significant life events and changes in the composition of pensioners' households. When these occur the assessed income period will end and entitlement to Pension Credit will be reassessed. This will include consideration of setting a new assessed income period based on the pensioner's circumstances at that time. The new period will normally run for five years from the date of the new assessment.
23.At the end of the five-year period, a reassessment will be made and any adjustments in income will only take effect from the beginning of the new five-year assessed income period. However, pensioners will be able to have their cases reassessed on request at any time during the five-year assessed income period should their retirement provision decrease. If that results in higher entitlement to Pension Credit, Pension Credit will be paid at the new higher rate.
24.The income assessment for Pension Credit will abolish the current remunerative work (16-hour) rule that applies to MIG claimants. Pensioners will not lose their entitlement simply because of the number of hours they, or their partners, work each week.
25.On 15 March 2000, the Government announced a new pensions organisation within the Department for Work and Pensions, which would manage benefits and services for older people. On 2 April 2001, the Government announced that the new organisation would be called "The Pension Service". The Pension Service began to operate on 1 April 2002 and will manage Pension Credit from October 2003.
