Credit Title Guide Chapters 5 to 9.pdf

Credit  Title Guide – Chapters 5 to 9
05 Credit Enquiries
Award  Queries  and  Complaints
1. Claimants may  query  their award of benefit,  including  the award of credits, either
whilst  an  award is still current,  or following  its termination.  Where  a claimant  asks for
information  about their  award of benefit,  they  must  be told whether  or not  credits
have  been awarded,  and if so how  many  and the  appropriate periods covered.
2. As credits are only  awarded for complete weeks of incapacity  (Sunday  to
Saturday)  the  number  of credits may not  be the  same as the  number  of weeks the
claimant  was incapable of work. For example,  a claimant  who  was sick for  6½ weeks,
with  a claim date Wednesday  and ceasing on  a Friday, would  have  six credits rather
than  seven.
3. The  same will  occur  if the  claim started on a Monday  but  ceased mid-week. A
credit would  only  be awarded for the  full  week if the claimant  had been claiming JSA
until  the  day before they  claimed IB or ESA, or made a claim to JSA the  day following
the  last day of their  IB or ESA award.  This  is known  as a mixed credit.
4. If  the  claimant  complains about  the  award, or non-award  of credits take action to
check:
•  PSCS and/or JSAPS for details of benefit awards
•  eNIRS2 to view what is shown  in the contributions,  benefit and liability screens
in relation  to tax year(s)  of enquiry
•  clerical papers if appropriate
•  CIS if appropriate
Award  of credits  incorrect
5. Where investigation  shows  that  the award  of credits is incorrect,  then  the
appropriate adjustment  must  be made using  the eNIRS2  browser.  An explanation  of
the  correct number  of credits due,  and the  period for which  they  have  been awarded
should  be sent  to the  claimant  on CTG1.  Depending on the  nature  of the  complaint,
this form  may  be sent alone,  or as an enclosure  with  other  correspondence.  CTG1
gives the  claimant  the right  of appeal if they  disagree with  the  award of credits.
6. If  credits have  been awarded but  not recorded on NPS, use the  eNIRS  browser  to
insert  the appropriate period of liability.  Issue  CTG1 to notify  the claimant  that  credits
have  now  been awarded.
7. If  the  credits cannot  be awarded for the  claim, issue CTG1 to notify  the claimant
accordingly.
8. If  the  claimant  requests  a reconsideration  or appeals, refer the  case to the DM.
Subpages
•  Credit Enquiries Arising from Deficiency Notices and Pension Forecasts

•  Credit Queries via HMRC

•  Appeals against Award of Credits

Credit Enquiries Arising from Deficiency Notices and Pension
Forecasts

9. Claimants may  query  the number  of credits on  their account  following  receipt of a
Deficiency Notice or a State Pension forecast.  Both advise the  claimant  that  a
particular  tax  year  is deficient for basic State Pension purposes.
10. Claimants will  query  the  deficiency  where  credits have  not been awarded for a
particular  period, and other  contributions  and/or  credits are insufficient  to give them  a
qualifying  year  for basic state pension purposes.
11. Credits may  not have  been awarded for a number  of reasons.  The  most usual  are
failure  to:
•  Award a mixed credit. Click here to see how to award a Mixed Credit.
•  Award credits for the period between account  deletion and re-insertion.  Click
here to see how to award credits for the  period between  account  deletion  and
re-insertion.
•  Award credits for claims maintained clerically.  See awarding credits on a
clerically maintained claim. In  some cases, although  the claimant  has  been
continuously  sick for  a long  period and there  has been no intervention
on/interruption  to their award, a complete tax year’s worth  of credits can be
missing.
Credit Queries via HMRC

12. Claimants may  approach HMRC  direct following  receipt of a DN, a pension
forecast or just  to seek general  information  about their  NI  contribution  record.
Depending on the  nature  of the  query,  HMRC  may need to ask Jobcentre  Plus  for
information  about credits awarded for periods of incapacity.
13. HMRC will  send form CA1046 seeking details of incapacity  credits. On receipt of
the  request,  follow  the  same process outlined  in Award of credits incorrect  and
complete form  CA1046 to advise HMRC of the  correct credit position. If  the  record is
different  from  that  advised by HMRC,  use eNIRS  to adjust  the credits by amending
the  period of liability  and advise the  claimant  on form CTG1.
No reply  to HMRC  enquiry
14. If  HMRC  have  not received a reply  to form CA1046 within  four  weeks they  will
issue a reminder  addressed to the IB/ESA  team Leader. On  receipt of the  reminder,
the  IB/ESA Team Leader should  ensure  that  the process set out in Award of credits
incorrect  is followed  and arrange  for the  form to be completed and  returned  to
HMRC.
15. If  there  will  be a delay  in returning  the form  to HMRC,  the  Team Leader should
contact  HMRC  to explain  the  reasons  for delay and  agree a suitable  date when  the
form will  be returned.
Appeals against Award of Credits

16. The  claimant  has the  right to ask us  to reconsider any  award of credits, whether
or not there  is also benefit  in payment,  or any  benefit appeal. This  is known  as a
Mandatory  Reconsideration.
17. If  a claimant  disagrees with  the  number  or the  period of an award of credits they
can request:
•  an explanation
•  a written  statement  of reasons, or
•  a Mandatory  Reconsideration.

18. A claimant  must  be given  a full  explanation  of the  reason(s)  for the  award/non-
award of credits. If  not  already  sent,  the  claimant  should  be sent form  CTG1. If  the
claimant  is not  happy  they  can ask for a Mandatory  Reconsideration  of the decision.
19. A claimant  must  have  a Mandatory  Reconsideration  before they  can  submit an
appeal to Her Majesty’s Courts and Tribunal  Service.
20. Credits can only  be awarded for each complete  week of incapacity,  and  will not
be available  for periods when  incapacity was not  accepted. This includes  periods
where  the  claimant  was in receipt of Income  Support pending  an appeal against
being found  fit for work,  and where  the  appeal subsequently  went  against the
claimant.  As they  were neither  sick nor unemployed  and available  for and actively
seeking work in accordance with  JSA legislation,  no credits would  be due for this
period.
21. Where a claimant  has been found  capable of work and their  IB or ESA is
subsequently  reinstated  at the  Appeal Tribunal,  action must  be taken to ensure  that
credits for this period are correctly  recorded on the claimant’s account.  IB and ESA
credits take priority  over JSA credits so any  JSA credits awarded should  be removed
by the  JSA Team.
Note: Only  JSA processors have  the  authority  to remove  JSA credits on the  eNIRS
browser.
22. Use the eNIRS  browser to check that  the IB  or ESA liability matches  the  Appeal
Tribunals  decision. If  necessary  use the  eNIRS  browser  to insert  a clerical  period of
IB  or ESA liability.

06 Evidence of Incapacity for credit purposes
Providing  Evidence  of Incapacity  for Credit Purposes
1. Anyone who made a claim for IB or SDA had to provide evidence o f
incapacity before their claim was considered, and the availability of credits
determined.
2. Anyone wishing to make a claim for ESA, MA or for incapacity credits has to
provide evidence of incapacity, limited capability or pregnancy before their
claim can be considered, and the availability of credits determined.
3. For ESA, IB and SDA this is/was normally in the form of a fit note (also
known as Statement of Fitness for Work or SoFFW)  when the claim is/was
made, followed by regular Work Capability Assessment for ESA cases and
Personal Capability Assessment for IB and SDA cases, following the award of
benefit or acceptance of incapacity for Credits Only cases.
4. In  MA claims a certificate of expected confinement is provided which
provides the basis for pa yment, and the award of credits, for the maternity pay
period. Where incapacity precedes and follows on from a claim to MA, normal
medical evidence is required.
5. Claimants may provide evidence other than a normal fit note from their GP.
This may be from an alternative medical practitioner. See DMG 13100 onwards.
6. The  Decision Maker will determine whether the evidence provided is
sufficient.
Subpages

•  Qualification  for Benefit and or Credits

•  Impact of Periods Abroad, Imprisonment  and Disregarded Work on ESA

•  Impact of Periods Abroad, Imprisonment  and Disregarded Work on IB-SDA

•  Time Limits

•  Late application for credits received

•  Claimant makes late claim to benefit

•  Period of Credit Awards

•  Processes for Dealing with Disputes Relating to Credits for Periods of Limited
Capability for Work, Incapacity  or Maternity

Qualification for Benefit and or Credits

7. To qualify  for benefit the  claimant  must:
•  For ESA, have  or be treated as having,  limited capability for work or
•  For IB, be incapable of work or
•  For SDA, be or be treated as being, 80% disabled or
•  For MA, be in the maternity  pay period and not working.

8. If  the  contribution  conditions  for ESA (C) or IB are not satisfied, the  claim can be
accepted as a Credits Only  award, subject  to the  limited capability  for work for ESA
or incapacity conditions  for IB  and SDA being satisfied. If  the claimant  does not
satisfy  the  conditions for payment  of MA, credits can  be awarded on incapacity
grounds  for the  6 weeks before the  expected week of confinement,  the  week of
confinement  and two weeks after the  birth.

Impact of Periods Abroad, Imprisonment and Disregarded Work on
ESA

9. Credits are only  due  where  the claimant  satisfies the limited capability for work
conditions  defined in Schedule  1 Section 8 of the  Welfare Reform  Act 2007.

10. ESA was implemented  on 27th  October 2008, to replace Incapacity  Benefit and
Income  Support on  the grounds  of incapacity,  and introduced  the  definition of limited
capability for work.  Where  limited capability for  work is not  accepted credits cannot
be awarded for any  period that  the claimant:
•  goes abroad – the decision maker will need to consider if the absence is
temporary,  benefit award  is ESA (IR)  or ESA ( C ) and if absence is to a
country  where  EU Regulations  apply;  see Absence Abroad.
•  has work which cannot be disregarded; see Work or
•  is otherwise disentitled from receipt of benefit, or would have been if benefit
had been in payment,  including  disentitlement  for periods of imprisonment,
see Imprisonment  or Detention  in Legal Custody

Impact of Periods Abroad, Imprisonment and Disregarded Work on
IB-SDA

11. Credits are only  due where  the  claimant  satisfies the  incapacity  conditions as
defined in Sec 30c of the  1992 Contribution  and  Benefits Act.

12. Where limited capability for work  or incapacity  is not  accepted credits cannot  be
awarded for any  period that  the  claimant:
•  goes abroad; see Absence Abroad
•  has work which cannot be disregarded; see Work Undertaken  During
Incapacity  or
•  is otherwise disentitled from receipt of benefit, or would have been if benefit
had been in payment,  including  disentitlement  for periods of imprisonment,
see Imprisonment  or Detention  in Legal Custody
Time Limits

13. There  are time limits within  which  credits must  be applied for.  These are longer
than  the normal  period for backdating an award of benefit following  a late  claim. The
maximum  period for backdating benefit is three  months  prior to the  date of claim.
14. The  maximum  time limit for a late application to credits is either:
•  before the end of the benefit year immediately following  the year in which the
credits claim is made; or
•  within such  further  time as may be reasonable in the circumstances of the
case,
•  providing the claimant,  or the claimant’s representative,  provide the Secretary
of State a notice in writing  the grounds  on which  he/she  claims to be entitled  to
credits.
15. Staff acting on behalf  of the  Secretary  of State must  establish whether  or not  it
would  be reasonable to backdate the  credits beyond  the time limits depending on the
circumstances  of each application. The  appropriate incapacity or limited capability for
work conditions  also have  to be met for the  period in question.  See Basic Conditions
of Entitlement  for ESA Credits and Claim Time Limits for IB  Credits.
16. Where credits are awarded following  a late  application, they  should  be recorded
on the claimant’s account by inserting an appropriate period of IB or ESA liability on
the  eNIRS  browser.  A note  should  be entered in notepad  giving the  period and
number  of credits awarded, together  with  the explanation  for the decision to award
them.
Late application for credits received

17. The  following  examples  show  the  action to take when  an  application for credits is
made within  and outside the  set time limits:
Application  for credits  received
Example 1
On  01/09/13 a claimant  makes a late application for credits from the  period 15/01/12
to present  date and supports  this  with  the required medical evidence.  As the  claimant
satisfies the  incapacity  conditions and has  applied for the credits within  the  next
benefit  year (06/01/13 to 04/01/14) the  DM can accept the  late application.
Benefit Processor Action
The  processor should  use  the eNIRS  browser to award credits by adding an open
period of liability from  15/01/12 and  issues form  CR6 to notify  the  claimant  that
credits have  been awarded.
Late application  – claimant  provides  supporting  evidence
Example 2
On  16/12/13 a claimant  makes a late application for credits for the  period 03/07/11 to
present  date. The  claimant  provides the  DM with  medical evidence  for the  whole

period together  with  written  evidence to show  he was in hospital from  03/07/11 to
14/12/13. As the  claimant  has provided the  appropriate medical evidence and  it
would  be reasonable in these  circumstances,  to accept that  the  claimant  could  not
have  claimed earlier, the  DM accepts the  late application
Benefit Processor Action The  processor uses  the eNIRS  browser to award credits by
entering  an  open period of liability  from 03/07/11 and issues form  CR6 to notify  the
claimant  that  credits have  been awarded.
Late application  – claimant  cannot  provide  supporting  evidence
Example 3
On  23/12/13 a claimant  makes a late application for credits for the  period 03/04/11 to
present  date. The  claimant  provides medical evidence from  03/04/11 showing
Backache as the  cause of incapacity but  does not  provide any  further  information.  As
the  application has been made outside  the time limits (not  made within  the 12/13
benefit  year),  the  claimant  has not  provided any  further  relevant  information  the  DM
does not  accept the  late application for  the period falling  outside  the time limits from
03/04/11 to 31/12/11. The  credits are allowed  from 01/01/12 (start  of the 12/13
benefit  year).
Benefit Processor Action
The  processor uses the  eNIRS  browser  to award  credits for the  period that  falls
within  the  time limits by opening a period of liability from 01/01/12 and issues  form
CR6 to notify  the  claimant  of the number  of credits that  have  been awarded.
Supporting  evidence  fails  to show  reasonable  reason  for late  application
Example 4
On  20/10/13 a claimant  makes a late application for credits for the  period 06/02/11 to
present  date. The  claimant  provides medical evidence from  06/02/11 and a letter
explaining  that  he had experienced  domestic troubles  due to his marriage breaking
up and making an  earlier application for NI  credits had not  been one of his priorities.
In  this particular  scenario the  DM comes to a decision that  despite the claimant
experiencing  marriage difficulties,  it was still  reasonable  for the claimant  to have
made an  earlier application for credits. The  DM considers all  of the  circumstances  of
the  case including  the nature  of the  incapacity and does not accept the  late
application for the  period falling  outside the  time limits from  06/02/11 to 31/12/2011
but  allows  the award of credits from 01/01/12 (the  start  of the  12/13 benefit year).
Benefit Processor Action
The  processor uses the  eNIRS  browser  to award  credits for the  period that  falls
within  the  time limits by opening a period of liability from 01/01/12 and issues form
CR6 to notify  the  claimant  of the number  of credits that  have  been awarded.
18. The  above examples  cover a number  of different  scenarios that  may occur,
however,  the DM wil  want to consider every  application received on it’s own merits
together  with  any  evidence  provided by the  claimant  to support why  it was
reasonable  having  regard to the circumstances  of the  case, for  the application not  to
have  been made within  the  time limits.
Claimant makes late claim to benefit

19. Where a claimant  makes a backdated claim for benefit,  which  is disallowed solely
on late  claim regulations  it must  be considered whether  credits can be awarded for
the  period in question.  To qualify  for credits the DM must  be satisfied that  the
claimant  would  have  satisfied the incapacity  conditions  or be treated  as having
limited capability for work by  providing medical certificates for the period in question.
20. Where the  conditions  are satisfied for the  award of credits, but  not for  payment  of
benefit,  the  claimant  must  be advised accordingly,  and given the  opportunity  to

appeal against both the  decision not  to pay benefit,  and the  number  and  period of the
award of credits.
21. Where credits are awarded following  a late  claim to benefit,  they  should  be
recorded on the claimant’s account  by inserting an appropriate period of IB or ESA
liability on  the eNIRS  browser.  A note  must  also be made in notepad  giving the
period and number  of credits awarded,  together  with  the explanation  for the decision
to award them.
Period of Credit Awards

22. Credits are normally  awarded for the  same period as the  claim to ESA, IB,  SDA
or MA, but subject  to only  being awarded for complete weeks from Sunday  to
Saturday.
23. Where a claimant  makes a claim, or the benefit  award ceases mid-week, there
will  be no title  to a credit for that  week, unless  the claim follows,  or is followed
immediately  by a claim to JSA. Credit weeks, which  span the  6th  of April, are
allocated  to the  tax  year in which  the beginning  of the  week falls.  For example,  credit
week beginning  4th April 2010 is the  last week of the 09/10 tax  year and credit week
beginning  11th April 2010 is the  first week of the 10/11 tax  year.  About every  6th  year
this leads to a 53 credit week year.
24. Where the  claimant:
•  makes a claim on a Monday,  or an award ceases on a Friday, and no medical
evidence  is held for the  Sunday  preceding the claim or the Saturday  following
the  end of the award;  and
•  would not normally  work or does not work on that day, a credit should  be
awarded for that  week.
Example
Claim made for a spell  of sickness from  Monday  11/10/2010 to Friday 26/11/2010
Claimant  does not work  weekends.
Credits will  be due for the  credit week beginning  Sunday  10/10/2010 to credit week
ending  Saturday  27/11/2010 as it is accepted the  claimant  was incapable of work  for
the  whole  of the first  and last credit weeks Sunday  to Saturday.
25. Where no  benefit is in payment  the  award of credits will  continue  so long  as the
claimant  satisfies the  Limited Capability for Work, incapacity  or maternity  conditions.
They  are subject  to the same medical controls  as claimants  in receipt of ESA, IB,
SDA or MA.
26. If  a Credits Only  claimant  fails either the  WCA for ESA, or the PCA for IB / SDA
then  no further  credits can be awarded. The  claimant  should  apply for  credits through
the Jobseeker’s Al owance route, if they  are available for work and actively  seeking
employment.
Note: If  the claimant  appeals against the  Limited Capability for Work disallowance
decision, they  are entitled  to appeal against that  outcome decision. While their
appeal is heard, the  claimant  can continue  to receive ESA credits as long as they
continue  to provide medical evidence  and regardless of whether  they  were in receipt
of ESA(C) or ESA(IR).
27. If  the  claimant  appeals against the  WCA/PCA decision that  they  no  longer have
limited capability for work/incapacity  for work,  and a tribunal  finds in their  favour,  then
credits will be due for period from the  date of allowance  to the date the  credits only
claim is reinstated.
28. Whether  or not  benefit  is reinstated,  following  a successful  appeal by the
claimant,  staff must  use  the eNIRS  browser to ensure  that  credits for the  period
covered by the appeal are recorded on the claimant’s account.

Processes for Dealing with Disputes Relating to Credits for Periods
of Limited Capability for Work, Incapacity or Maternity
Requests  for Mandatory  Reconsideration
29. A claimant  can ask for  a review  of the  number  and period of an award of credits,
with  or without  requesting  a review  of their benefit  award. They  can  request:
•  an explanation
•  a written  statement  of reasons
•  a mandatory  reconsideration (MR)
30. When  a claimant  disputes a decision, always  offer an  explanation  as this  may
mean that  the claimant  does not progress further  down the  dispute process.
31. Where a claimant  asks for an explanation,  ensure  that  all credits have  been
correctly  awarded by checking:
•  PSCS and/or JSAPS for details of benefit awards
•  eNIRS2 to view what is shown  in contributions,  benefit and liability screens in
relation  to tax  year(s)  of enquiry
•  clerical papers if appropriate
•  DCI if appropriate
32. If  the  investigation  shows  that  additional credits are due,  advise the claimant  of
the  revised record on form CTG1 and  use the  eNIRS  browser  to enter  a period of
liability to update  the amount  of credits on NPS.
33. If  the  claimant  is content,  no further  action is required.
34. If  the  claimant  is still not  satisfied or no further  credits are due,  refer the
application to the complex  DM for a mandatory  reconsideration.
Result  of Mandatory  Reconsideration
35. If  the complex DM confirms that the credits record is correct, the Benefit
Processor should issue the refusal to revise decision to the claimant and two
copies of the Mandatory Reconsideration Notice (MRN).
36. The claimant cannot lodge an appeal with Her Majesty’s Courts and
Tribunal Service without an MRN.
Appeal  successful
37. It  is important that the eNIRS browser is used to enter a clerical period of
IB or ESA liability to cover the period of credits awarded by the appeal tribunal.
A note should be included in notepad giving the details of the period and
number of credits awarded following the successful appeal.
07 Impact of JSA and CA Credits on IB and ESA
Claimant  previously  in receipt  of JSA  claims  IB or ESA
1. Claimants who satisfy the relevant conditions are entitled to a credit for each
complete week of unemployment. These credits are available to assist in
entitlement to any future claim to contributory benefits. Queries about the
availability of credits for periods of unemployment are dealt with by the
appropriate JSA section.
2. Where a claimant has been unemployed, then makes a  claim to IB or ESA,
credits can be used to satisfy the contribution conditions subject to the normal
rules. This applies to claimants who have been signing for JSA credits only and
who claim as a Credits only case, as well as to cases where JSA(C) or JSA(IB)
had been in payment and the claimant is able to satisfy the contribution
conditions for payment of IB or ESA(C).

Subpages
•  Mixed Credits

•  Queries about overlapping JSA or CA credits
Mixed Credits

3. A Mixed Credit is awarded for the  week in which  a claimant  receives two  different
benefits  in the  same week, e.g. JSA from Sunday  to Thursday  and IB  or ESA from
Friday.
Example
JSA claim ends on Thursday  10/06/2010 – NPS will  award a JSA credit up to
Saturday  05/06/2010
Linking IB  claim starts Friday 11/06/2010 – NPS opens a new  incapacity liability  from
Sunday  13/06/2010
This  leaves a potential  gap from Sunday  06/06/2010 to Saturday  12/06/2010
4. To consider the  award of a mixed credit:
•  check JSAPS to see if claimant was previously  in receipt of JSA or signing as
credits only
•  check PSCS or JSAPS to see if claim follows  on immediately from JSA award
e.g. claim to IB or ESA made on day following  last  day of JSA award.
5. If  there  is a gap between  the JSA claim and the  new  IB or ESA claim,  the claimant
would  not  qualify  for a mixed credit.
Awarding  a Mixed  Credit  for an IB or SDA  claim
6. If  there is no gap between the JSA and IB/SDA claims, award the mixed
credit by using the eNIRS  browser  to insert one DSS Local Office credit in the
appropriate tax year. More  about adding credits can be found in eNIRS
instructions.
7. Note:  The DSS Local Office option available in the drop down menu should
only be used to award a mixed credit and should not be used for any  other
reason unless it is to remove previous inappropriate DSS Local Office entries.
Awarding  a Mixed  Credit  for an ESA  Claim
8. Award a mixed credit providing there is at least one day of limited capability
in the benefit week (Sunday to Saturday).
9. To award a mixed credit, use the linking screen JA628658 to input Y  in the
Award mixed credit field and this will automatically award the mixed credit and
transmit the information to NPS.
Awarding  a mixed  credit  for a clerical  IB(IS)  Reassessment  claim
10. To award a mixed credit for clerical cases transferring from IB to ESA, use
the eNIRS browser to:
  Select Add Liability in the Liability Summary  Screen
  Select liability type Periods of ESA (Clerical)  – for ESA claims from 26/10/08
from drop down  menu
  Insert  the ESA liability start date. PSCS ends the claimant’s IB liability from the
Saturday  before the  claim closure  date. The  ESA liability  start  date is the
Sunday  before the ESA Effective  Date.
  Input  the local office number  in the office number  field
  Press Submit
  A pop up box will appear asking if you are sure that  you want to submit the
details.

  Select OK
11. When inserting the ESA period of liability, consider whether any associated
ESA S2P period of liability needs to be entered on eNIRS but only  for S2P
periods of liability before 06/04/2016 as NPS will reject  S2P periods later than
that date.
Note: From 6 April 2016 S2P will no longer be given for ESA recipients due to
changes made in the Pensions Act 2014. Any periods of S2P earned before
this date will be held within the NPS system and paid when a person rea ches
State Pension Age (SPA) as part of their State Pension.
Claimant  moves  from  Approved  Training  to IB/ESA
12. A mixed credit is not required if the claimant has moved onto IB or ESA
straight from a period of Approved Training as the Approved Training cr edit will
cover the full week.
Queries about overlapping JSA or CA credits

13. Class 1 credits are normally only  available from one source at a time.
Where the claimant is in receipt of more than  one benefit during the same week
there are set rules about the award of credits.
14. It  is important to ensure that the correct start and end dates of the period of
the award are entered on PSCS or JSAPS, so that accurate liability periods are
transmitted to NPS. This should ensure that there is no overlap of cred its
between IB/ESA and JSA.
15. If  it is found that a period of liability is incorrect, use eNIRS2 to amend the
period. See eNIRS instructions  for IB & ESA staff.
Excess  credits  posted
16. NPS will output a rejection form RD23 if excess credits are posted to a
claimant’s account. The benefit processor should check the various award
details and identify which benefit system awarded the excess credits. If the
excess credits are IB or ESA credits, use the eNIRS browser to adjust the
appropriate period of liabi lity. For more information see RD23 Rejection  – Failed
Personal  Surplus  Class1 Credit Check.
17. If  the excess credits have been awarded by another benefit system, contact
that team to ask that the excess credits are removed.
Claimant  in receipt  of Carers  Allowance
18. Where a claimant in receipt of Carer’s Allowance claims IB or ESA, the
credits for the period of IB/ESA take precedence over the CA credits. It is for
CA Unit to make any adjustments to their credits for the period of overlap. This
will be done after the end of the tax year, when  RD23 rejections for excess
credits are output to the CA Unit.
08 Credits for periods of education or training
Introduction
1. Special credits are available in certain circumstances to claimants who have
recently terminated a period of full time education, training or apprenticeship.
2. Young  people may qualify for special credits following a period of education,
training or apprenticeship providing that:
  the first contribution  condition (FCC) is satisfied;

  the claimant has paid and/or has been credited with enough  contributions  for
the  other  tax year  relevant  to their  claim to be a qualifying  year;  and
  the course began before age 21.
3. These special credits are only used to enable the claimant to qualify for
IBST, ESA (C) or Jobseekers Allowance (JSA) following a period when they
have been in full  time education, training or apprenticeship and had therefore
been unable to pay NICs during one of the relevant tax years. The award of
special credits is noted on local reco rds only, and is not recorded on NPS.
4. Special credits in these circumstances are not available where the claimant
was over 21 when  the course began, nor for tax years prior to the one in which
the claimant reached age 18.
Subpages
  Awarding Special Credits for FTE

  Awarding Special Credits for Training

Awarding Special Credits for FTE

5. To award FTE special credits:
  check the benefit reply  to see if FCC is satisfied
  check the Second Contribution condition (SCC) to see if the claimant has at
least 50x  the lower  earnings  limit in either of the  RITYs
  confirm that the claimant was undergoing FTE at any time in the non-
qualifying  year
  ensure the course began before the claimant reached the age of 21
  confirm the FTE course ended before the date of the current  claim.
  confirm the claimant was at least aged 18 during the tax year for the which the
credits are being considered

6. If  the  claimant  satisfies all  of the  above conditions,  special credits can be awarded
for the  non-qualifying  RITY.
Awarding Special Credits for Training

7. Special credits are available to satisfy a non qualifying year where:
  the claimant was undertaking  a period of training
  the other contribution  year is satisfied
  the training course or apprenticeship has ended.
8. Training credits a re available for claimants who undertake a course of
training which was full  time and which was:
  arranged under section 2(1) of the Employment  and Training Act 1973 or
section 2(3) of the  Enterprise & New  Towns  (Scotland)  Act 1990; or
  any other full  time course where the sole or main is to acquire occupational  or
vocational  skills; or
  a part time course attended for at least 15 hours a week and the claimant is a
disabled person within  the  meaning of the  Disabled Persons (Employment)
Act 1944 purpose; or
  an apprenticeship; and the other year is a reckonable year
9. Special credits are not available where:
  the training or apprenticeship commenced after the age of 21
  where a married woman has a married woman’s reduced rate election
  the tax year is before the year in which  they attain the age of 18.

10. To award special credits for training or apprenticeship:
  confirm the claimant started training in the RITY
  confirm the claimant was over age 18 in the tax year in which  the training
started.
  confirm the claimant was undergoing full  time training, (or is the claimant
disabled within  the  meaning  of the  1944 Act and doing training  of not less than
15 hours  a week) or
  establish if the course was an introductory  course for either of the above
courses
  confirm that the course was intended to last for less than  12 months  at the
outset,  unless  the  course was under  the 1944 Act
11. If  the conditions are satisfied, award special credits for the non qualifying
contribution year. Record the award of the special credits in dialog ue RP801 or
on clerical papers.
09 Starting credits
Starting  Credits  for Periods  of Incapacity
1. Until October 1988 special rules applied to enable a claimant to qualify for
Sickness Benefit. Starting credits were available for the tax year of the 17th
birthday, and any  earlier relevant tax year. These starting credits were also
used to help claimants qualify for MA and Unemployment Benefit (UB).
2. Starting credits could not be awarded for any period after 1 October 1988,
and therefore ceased to be releva nt for benefit claims made on or after 6
January 1991.
3. These credits were not recorded on the claimants NI  account. They  should
not be confused with the Class 3 Juvenile credits which are automatically
awarded by NPS to help claimants qualify for basic State Pension. The Class 3
credits are awarded for the tax years of the 16th, 17th and 18th birthdays.
4. Following the reduction in the years needed to qualify for a full  basic Sate
pension, from 6th April 2010, the award of Class 3 Juvenile credits has c eased.