Pension Credit: Armed Forces
The question
To ask the Secretary of State for Work and Pensions, whether her Department plans to review its policy on defining military compensation as income in Pension Credit means tests.
Answered by Torsten Bell
The first £10 of any War Pension payment or Armed Forces Compensation Scheme (AFCS) award made due to injury or disablement is disregarded in Pension Credit. Income is calculated on a weekly basis, so the disregard is £10 per week.
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.
There are no plans to review the treatment of military compensation in Pension Credit.
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