Clause 8 - Fresh determinations increasing
State Pension Credit Bill [Lords]
12:15 pm
Mr Ian McCartney (Minister for pensions, Department for Work and Pensions; Makerfield, Labour)
I am not clear what subsection the hon. Gentleman is referring to. Subsection (2) takes what the hon. Gentleman said into account, because in the event of the pensioner receiving income additional to their original assessed income, they maintain the level of pension credit based on the original assessment for the period of that assessment. However the calculation is made, there will not be a net loss, whether things are put in separate boxes or not, during that assessment period. It could affect the next assessment, but for the period of the original assessment the pensioner will not suffer from any clawback or penalty. However the calculation is made, there will be no penalty of the sort that the hon. Gentleman described—I do not think that he is trying to trip us up.
When I explained to the hon. Gentleman why the new system was a virtuous circle, I was trying to show that, for the period of the original assessment, the sum payable under that assessment could not be affected other than by a loss of income, which could lead to its being increased. Wherever we cut the cake, the pensioner does not lose out. Clause 8(2)(b) gives power to make fresh determinations considering the net effect of change—I think that that is the hon. Gentleman's angle. It looks at the net effect of the change. If he is not sure about that, I shall write him a note.
I hope that, given my explanation, the hon. Member for Hertsmere will withdraw his amendment.