§ Paul FlynnTo ask the Secretary of State for Work and Pensions in what circumstances and for what reason, under pension credit legislation, pensioners will receive an award of £1.20 instead of 60 pence for each extra pound of qualifying income; and whether those entitled to the £1.20 award will be informed of this. [131044]
§ Malcolm Wicks[holding answer 18 September 2003]: In very exceptional circumstances the effect of applying the normal formula will be that some pensioners will receive a reward of £1.20 instead of 60 pence for each extra pound of qualifying income. This may happen if the Pension Credit recipient is also receiving a working tax credit, spousal maintenance, or a social security benefit which does not count as rewardable income. It will only occur if their total income brought to account is greater than their appropriate guarantee level but the income which counts for the savings credit is less than the guarantee level. If this happens the pensioner will be able to ask the Pension Service for an explanation.