Income and pension question

daveetwo

Situation is this:
Married couple. male 65 wife 62. Wife gets dla, husband entitled to carers but doesnt get it. He also gets state pension which is topped up with pension credit.
Do i assume correctly that if the wife got income from a modest trust fund that this would affect (reduce) the pension credit entitlement?

Kimitatsu

If you are in receipt of pension credit then I would give them a ring and ask them the question and they will send someone out to see you and run a full entitlements check.

That way you will definitely know you are claiming everything you are entitled to and if anything is wrong you have had advice from a reputable source.

Any further income into the household can affect means tested benefits, have you tried checking on www.entitledto.co.uk ?

DX2

Income that is counted towards Pension Credit

The amount of Pension Credit you get depends on how much money you have coming in each week and how much you have saved or invested.
The following types of income are taken into account when calculating your Pension Credit:

• State Pension (including basic State Pension and additional State Pension)
• occupational and private pensions
• most social security benefits like Carer's Allowance
• £1 a week for every £500 (or part of £500) of 'capital' you have over £6,000 (capital includes savings and investments, and property that's not your main home)
• £1 a week for every £500 (or part of £500) of 'capital' you have over £10,000 if you live permanently in a care home
• earnings after tax and expenses from employment or self-employment, less half of any company or personal pension contribution you make

In this year’s budget the chancellor announced that the £6,000 capital disregard will be increased to £10,000 for all from 2 November 2009.
If you have a partner you and your partner’s income and capital will be added together when calculating your Pension Credit.
http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_180168

daveetwo

DX2 wrote: »

Income that is counted towards Pension Credit

The amount of Pension Credit you get depends on how much money you have coming in each week and how much you have saved or invested.
The following types of income are taken into account when calculating your Pension Credit:

• State Pension (including basic State Pension and additional State Pension)
• occupational and private pensions
• most social security benefits like Carer's Allowance
• £1 a week for every £500 (or part of £500) of 'capital' you have over £6,000 (capital includes savings and investments, and property that's not your main home)
• £1 a week for every £500 (or part of £500) of 'capital' you have over £10,000 if you live permanently in a care home
• earnings after tax and expenses from employment or self-employment, less half of any company or personal pension contribution you make

In this year’s budget the chancellor announced that the £6,000 capital disregard will be increased to £10,000 for all from 2 November 2009.
If you have a partner you and your partner’s income and capital will be added together when calculating your Pension Credit.

Thanks for the responses.
I did give the pension credit service a call today and they confirmed that it would be counted as income. Income from a trust set up in place of a compensation sum would be exempt but not normal trust fund income.