Tax credit income test omits the State Pension Credit passport (SI 2002/2008 reg 4(1)(d)) #2032

The bug

tax_credits_applicable_income lifts the tax credit income test for Income Support, income-based JSA and income-related ESA, but not for State Pension Credit. A pensioner (or couple) entitled to Pension Credit who also has a tax credit award is income-tested, so their Child Tax Credit and Working Tax Credit are understated.

The law

• Tax Credits Act 2002 s.7(2): "Subsection (1) does not apply in relation to the entitlement of a person or persons to a tax credit for so long as the person, or either of the persons, is entitled to any social security benefit prescribed for the purposes of this subsection in relation to the tax credit."
• SI 2002/2008 reg 4(1)(d) prescribes "state pension credit within the meaning of the State Pension Credit Act 2002 or the State Pension Credit Act (Northern Ireland) 2002". It was added from 26 November 2003 by SI 2003/2815 reg 18.

What makes it fiddly

Working tax credit is Pension Credit income (SPCA 2002 s.15(1)(b)), so reading pension_credit from the income test is a dependency cycle.

Found while scoping the legacy award readers (#2026, #2027).