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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Eligibility - miscellaneous: Disability - severe disability element (Info)

Note: From 08/04/13 Personal Independence Payment (PIP) will be introduced as a replacement for Disability Living Allowance (DLA) for customers of working age (16-64 years of age). PIP will be made of two elements consisting of daily living and mobility and two levels of rates which are standard or enhanced. Customers under 16 and over 65 years old will remain on DLA.

Note: For tax credits purposes, the Highest Rate Care Component of DLA is the same as the Enhanced rate of daily living component of PIP, and will allow the customer to qualify for the Severe Disability element, so long as the other qualifying conditions are met. There is also an Enhanced mobility component of PIP, but this does not allow the customer to qualify for the extra element.

Note: For tax credits purposes, the current low and middle rates of DLA (whether care or mobility) will be either standard daily living or standard mobility component of PIP, and will allow the customer to qualify for the Disability element so long as the other qualifying conditions are met.

Note: From 08/04/13 Armed Forces Independence Payment (AFIP) will be introduced to replace Disability Living Allowance (DLA) for members and ex-members of HM Forces (Army, Navy, Air Force etc). A customer entitled to AFIP will receive the benefit for life, at the equivalent Enhanced rate of Personal Independence Payment (PIP) or higher rate of DLA, and will entitle a tax credit customer to the severe disability element of Working Tax Credit. The Service Personnel and Veterans Agency (SPVA), a division of the Ministry of Defence, will administer AFIP. The Department for Work and Pensions are responsible for making AFIP payments and maintaining the awards.

At least one customer must satisfy the remunerative work condition of Working Tax Credit (WTC) for this element to be included. The severe disability element of WTC is paid to the customer, their partner, or both of them if

  • the highest rate of DLA care component or enhanced rate of daily living component of PIP or AFIP is payable to them
  • the higher rate of Attendance Allowance is payable to them

or

  • either of the above were payable to them but payment has been suspended because the recipient is in hospital.

The element is paid whether it is the working or non-working customer who meets these conditions. If both customers meet the conditions two severe disability elements will be paid.