Commentary on Sections Sections 1 to 4: Entitlement and amount Section 2: Guarantee credit
47.The claimant is entitled to the guarantee credit if (in addition to satisfying the two common conditions described above in connection with section 1) he also satisfies the condition in subsection (1), which requires the claimant's "income" not to be above an amount referred to as "the appropriate minimum guarantee".
48.Subsection (2) provides that the amount of the guarantee credit is the amount of the appropriate minimum guarantee less any relevant income.
49.The meaning of "income" for the purposes of the Act is defined by sections 15 and 16, while section 5 provides that, where the claimant is a member of a couple, the income of the other member is to be treated as income of the claimant for the purposes of the Act (and so in effect provides for the aggregation of their income).
50.The "appropriate minimum guarantee" consists of two parts (subsection (3)):
51.Subsection (4) provides that the amount of the standard minimum guarantee will be prescribed by regulations and subsection (5) requires there to be one uniform standard minimum guarantee for a single person (expected to be around £100 in 2003) and one for a couple (expected to be around £154 in 2003).
52.Subsection (6) enables the Secretary of State to make regulations substituting a reference to a prescribed amount for the reference to the standard minimum guarantee in subsection (3)(a) in prescribed cases.
53.Where the power is exercised, the prescribed amount does not for any purpose become the standard minimum guarantee, but simply replaces the reference to it in subsection (3)(a), so that that provision effectively reads, for example, "£10" instead of "the standard minimum guarantee".
54.Accordingly, such a substitution does not affect the amount of the claimant's standard minimum guarantee for other purposes of the Act (such as determining the "maximum savings credit" under section 3(7)), but the standard minimum guarantee will not be brought into account for the purpose of determining the claimant's appropriate minimum guarantee (the substituted prescribed amount being brought into account instead).
55.It is intended that the power conferred by subsection (6) will be exercised, for example, in cases where the claimant or, if the claimant is a member of a couple, the other member of the couple remains in hospital for longer than thirteen weeks.
56.It is also intended that the power, as read with the power conferred by subsection (9) to prescribe nil as an amount, will be exercised to substitute "nil" for the reference to the standard minimum guarantee in subsection (3)(a) in cases corresponding to those in paragraphs 7 and 8 of Schedule 7 to the Income Support (General) Regulations 1987 (S.I. 1987/1967) where a nil amount is prescribed. That Schedule prevents prisoners, and members of religious orders who are fully maintained by their order, from receiving Income Support.
57.The power to prescribe "additional amounts" under subsection (3)(b) enables the Secretary of State to make provision for the appropriate minimum guarantee to be greater than the standard minimum guarantee.
58.Where, for example, the claimant is an owner-occupier with housing costs, it is intended that additional amounts will be prescribed in respect of those costs, such as mortgage interest, ground rent or service charges.
59.It is also intended that this power will be used to prescribe an amount additional to the standard guaranteed minimum where, immediately before qualifying for Pension Credit, the recipient was receiving Income Support or Jobseeker's Allowance which included an element of transitional protection. The increase will be included if, without it, the guarantee credit would not maintain, or improve, their previous level of income. The power will also allow for other additions to be made in future without the need for further primary legislation.
60.It is not intended that additional amounts should be prescribed in respect of children, as benefits for children are to become part of the new Child Tax Credit under the Tax Credits Bill.
61.The section requires the power to prescribe additional amounts under subsection (3)(b) to be exercised in two particular cases.
62.The first of these cases, addressed by subsection (7), is where the claimant is severely disabled. The circumstances in which a person is to be regarded as being or not being "severely disabled" will be the subject of regulations under section 17(2)(b).
63.In such cases the intention is that there will be a prescribed additional amount corresponding to the severe disability premium in Income Support. It is expected that in 2003 this will be around £43.45 for a single person and £86.90 for a couple.
64.The intention is that the rules will be the same as those for the receipt of the severe disability premium in Income Support.
65.In the case of a claimant who is a single person, those rules are that:
	the claimant must be in receipt of the care component of Disability Living Allowance at the highest or middle rate, or Attendance Allowance at either rate;
	there must be no non-dependants aged 18 or over living with the claimant; and
	there must be no one receiving Invalid Care Allowance (to be re-named "Carer’s Allowance" – see paragraph 67 below) for looking after the claimant.
66.In the case of a claimant who is a member of a couple, the higher rate mentioned above can be paid if:
	both members are in receipt of Disability Living Allowance or Attendance Allowance;
	they have no non-dependants living with them; and,
	no one is receiving Invalid Care Allowance (to be re-named "Carer’s Allowance" – see paragraph 67 below) for looking after either of them.
67.The second case where an additional amount must be prescribed under subsection (3)(b) is addressed by subsection (8) and is the case where the claimant is entitled, or is a member of a couple the other member of which is entitled, to an  allowance under section 70 of the Social Security Contributions and Benefits Act 1992 (allowances for caring for another person).  The allowance in question is Invalid Care Allowance but the Regulatory Reform (Carer’s Allowance) Order 2002 (S.I. 2002/1457), which was made on 29 May 2002, changes the name of Invalid Care Allowance to Carer’s Allowance with effect from April 2003.
68.The intention is that the additional amount in such a case will correspond to the carer premium in Income Support. It is expected that in 2003 the amount will be around £25.35.
69.Subsection (9) confers power to prescribe nil as an amount. This power cannot be used to prescribe nil as the standard minimum guarantee, but in combination with the power conferred by subsection (6), it can be used to prescribe nil as the amount that replaces the reference to the standard minimum guarantee in subsection (3)(a).