State Pension Credit Act 2002

3 Savings credit E+W+S

[F1 (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—

  (a)

  the maximum savings credit; and

  (b)

  a prescribed percentage of the amount by which the claimant’s qualifying income exceeds the savings credit threshold; and

• “amount B” is—

  (a)

  a prescribed percentage of the amount (if any) by which the claimant’s income exceeds the appropriate minimum guarantee; or

  (b)

  if 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—

  (a)

  the standard minimum guarantee; and

  (b)

  the savings credit threshold.

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

Textual Amendments

F1 S. 3(1) substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 89

Commencement Information

I1 S. 3 partly in force; s. 3 not in force at Royal Assent, see s. 22(3); s. 3 in force for certain purposes at 2.7.2002 by S.I. 2002/1691, art. 2

I2 S. 3 in force at 6.10.2003 in so far as not already in force by S.I. 2003/1766, art. 2(a)