Lump sum payments made to compensate those who were slave labourers, forced labourers or suffered personal injuries or property loss during the second world war are fully disregarded when calculating entitlement to pension credit.
In addition payments made to parents whose child died during the second world war are fully disregarded when calculating entitlement to pension credit.
Pensions paid by the German or Austrian Government which are the equivalent of the British state pension are fully taken into account. However pensions paid under special provisions by the German or Austrian Government to victims of National Socialist persecution are taken into account subject to a £10 disregard when calculating entitlement to pension credit.
Payments made to holocaust victims are not related to the German pensions paid to certain individuals who fled here from Nazi Germany as children before the start of the second world war in an initiative known as the ‘Kindertransport’. Recent legislation in the Pensions Act 2008 has enabled these persons to opt to revoke their pre-1948 British national insurance contributions while retaining their British state pension with the effect of improving their German pension entitlement.