The DWP has clarified the special rules that can apply when calculating a person’s state pension and benefits entitlement.
The information came in response to a question in Parliament, as Labour MP Mary Kelly Foy asked the Work and Pensions Secretary “what assessment she has made of the potential merits of not including military compensation as an income on means-tested benefit applications”.
Pensions minister, Andrew Western, said in response that there are already “special rules” for how War Pensions and Armed Forces Compensation Scheme (AFCS) awards interact with the state pension and benefits.
He explained: “The first £10 per week of a War Pension or AFCS award is disregarded in: income-related Employment and Support allowance; income-based Jobseeker’s Allowance; and Income Support.
“Armed Forces Independence Payments are fully disregarded in these benefits and can also allow the recipient to qualify for an additional disability amount.
“Furthermore, these are legacy benefits, in the process of being replaced by Universal Credit, in which War Pensions and AFCS are ignored.”
He said similar rules apply for Housing Benefit, with the first £10 a week from a War Pension or an AFCS disregarded when calculating a person’s entitlement.
There is also a discretionary scheme to allow local authorities to fully disregard these elements.
Turning to the rules for Pension Credit, Mr Western said: “The first £10 of any War Pension payments or AFCS award made due to injury or disablement is disregarded.
“Four additions to the War Disablement Pension are completely disregarded: Constant Attendance Allowance, Mobility Supplement, Severe Disablement Occupational Allowance, and dependency increases for anyone other than the applicant or her/his partner.
“War Pensions and AFCS awards are a qualifying income for the Savings Credit element of Pension Credit, which is available to those who reached state pension age before April 2016.
“Armed Forces Independence Payments are fully disregarded in Pension Credit and can also allow the recipient to qualify for an additional disability amount.”
The Government also recently provided information about how carers may be able to get extra payments through the benefits system.
Baroness Maeve Sherlock said in response to another question in Parliament: “Full-time unpaid carers on low incomes may also be eligible for means-tested support, such as Universal Credit and Pension Credit.
“These benefits can be paid to carers at a higher rate than those without caring responsibilities through the carer element and the additional amount for carers respectively.
“Currently, the Universal Credit carer element is £198.31 per monthly assessment period. The additional amount for carers in Pension Credit is £45.60 a week.”
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