Is State Pension Means Tested? -Sorry if it's Silly question!

pucci

Hello All,

Please help.......
I'm not clued up on Pensions and this may be a simple question but is the state pension means tested?
Basically, my Mum has come into some money so does she have to declare?
Would it affect her state pension entitlement?
Cheers!

dunstonh

is the state pension means tested?

No.

Would it affect her state pension entitlement?

only if she is in receipt of pension credit.

pucci

Thanks for that Dunstonh. Sorry but what is the difference between state pension and pension credit? My mum (was a housewife) did pay enough NI contributions and I'm not sure what sort of pension the government is giving her.

Paul_Herring

State pension = What the government gives everyone, regardless of income, savings, etc.
Pension credit = Means tested benefit to ensure everyone gets a minimum 'pension' from all sources.

See the near the end of http://www.dwp.gov.uk/mediacentre/pressreleases/2007/oct/drc043-181007.asp for the numbers. (Search for [State Pension / Pension Credit] without the brackets)

roddydogs

Paul_Herring wrote: »

State pension = What the government gives everyone, regardless of income, savings, etc.
Pension credit = Means tested benefit to ensure everyone gets a minimum 'pension' from all sources.

See the near the end of http://www.dwp.gov.uk/mediacentre/pressreleases/2007/oct/drc043-181007.asp for the numbers. (Search for [State Pension / Pension Credit] without the brackets)

"Gives Everyone"? No- only if youve got enough contributions!

margaretclare

State retirement pension is the 'basic', what you get if you've enough contributions. At present this means 39 years for a woman, although if you've always paid 'full stamp' while working (many didn't) you can receive Home Responsibilities Protection if you stopped work for a time to look after children/old people/disabled relatives.

Provided she fills all those conditions, a woman can get full state retirement in her own right, which at present is £90.70 a week.

If she has no other income - no SERPS, no private pension, no pension from work - then it is recognised that £90.70 a week is not enough to live on. This is where pension credit kicks in (has to be applied for). This is the part that IS means-tested and it carries with it an entitlement to other means-tested benefits e.g. council tax benefit and/or housing benefit.

HTH

Paul_Herring

roddydogs wrote: »

"Gives Everyone"? No- only if youve got enough contributions!

Guilty of over-simplification.

I sit corrected

pucci

Many thanks to all who's replied.

BTW Paul, I'm just curious as to what LTSB stands for ?

jem16

pucci wrote: »

Many thanks to all who's replied.

BTW Paul, I'm just curious as to what LTSB stands for ?

Lloyds Trustee Savings Bank.