Inheritance & Pension Credit/Housing Benefit

Spookeyone · 25 May 2017 at 7:00PM

Hello, I'm not sure I'm in the right forum to ask this. My mother is living in private rented accommodation and has full housing benefit (her rent is £445 pcm) as well as being in receipt of the pension credit guarantee of £159.35 per week. She has no savings at all.

She is due to inherit £16,911 and is confused about the thresholds for when the benefit changes. Obviously she knows she must declare this to the DWP but there seems to be confusion about whether the savings threshold is £6000 or £10000 before her entitlement to HB/PC is affected. Can anyone help with this please?

Linton · 25 May 2017 at 7:36PM

https://england.shelter.org.uk/housing_advice/housing_benefit/how_housing_benefit_is_calculated

Spookeyone · 25 May 2017 at 7:46PM

Thank you for the link. I'm confused about this part;

"Savings and investments

You are not entitled to any housing benefit if you and your partner have savings of £16,000 or more UNLESS you receive pension credit guarantee."

As Mum DOES receive pension guarantee it doesn't make it clear how that effects her entitlement to the benefits.

Thanks in anticipation.

xylophone · 25 May 2017 at 8:26PM

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS17_Housing_Benefit_fcs.pdf?dtrk=true

See also

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true

as her capital will be more than £10,000.

Every £500 or part of £500 of capital over £10,000 is assumed to give
you a weekly income of £1 a week. This is called ‘deemed income’. For
example, if you have savings of £12,200, a weekly deemed income of £5
is included in your income assessment.

Keep_pedalling · 26 May 2017 at 12:31AM

How old is your mother? If she was over 75 before April 2016 then she should be on an indefinite assessed income period. If this is the case she does not have to report her windfall to the DWP as it will not effect her pension credit.

xylophone · 26 May 2017 at 12:38AM

http://www.entitledto.co.uk/help/assessed-income-period

Spookeyone · 27 May 2017 at 11:04AM

She is 78 and has received information about the assessed income period but it said that ANY changes would bring the indefinite period to an end. Makes it sound that by reporting the windfall means she's then subject to her benefits needing to be reassessed.

atush · 27 May 2017 at 2:18PM

Really more of a benefits question- have you asked there?

Try Age concern?

xylophone · 27 May 2017 at 2:22PM

If unsure, just report the inheritance to the DWP - she will be informed as to whether or not there will be any change to her GPC.

It would seem that if she continues to receive any GPC, she'll be entitled to HB.

With regard to HB, according to Age Concern:

HB is based on your income and capital. In general, you must have no
more than £16,000 in capital although this limit does not apply if you
receive the Guarantee Credit part of PC.

If you receive the Guarantee Credit part of PC, you do not need to
work out capital, income or applicable amounts, as you are entitled
to maximum HB minus any non-dependent deductions

Spookeyone · 27 May 2017 at 3:03PM

Thanks for all your help. We'll report the inheritance to DWP this week and see what they have to say. I'm sure there'll be some amendments to her benefits and hopefully then she'll feel less anxious about it. Thanks again.

davieg11 · 27 May 2017 at 4:04PM

If she has not inherited the money yet, then in may well be in her best interests to refuse it.

Inheritance & Pension Credit/Housing Benefit

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