Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether Income Tax liabilities arising from simple assessment are taken into account when calculating (a) Housing Benefit and (b) Council Tax Reduction entitlement for pensioners.

The assessment of entitlement to Housing Benefit and Local Council Tax Support takes into account a person’s net income plus the value of any DWP benefits they receive.

Taxation is a matter for HMRC. It treats pension income, whether State or occupational, in the same way as other taxable income. However, the Chancellor has said that over this Parliament those whose only income is the basic or new State Pension without any increments will not have to pay income tax.

The government will set out more detail in due course.

No new guidance has been issued to local authorities on this matter.