Utterly confused - need help!

chris8

Can anyone please tell me how much savings are allowed before it affects benefits - I cannot seem to find a definite answer! Parents are both over 80, get a pension and pension credits (think that's what its called maybe tax credits - again confused!), their council tax is paid as well. That's what they get but have now come into some money and are totally stressing me out over what they are allowed to have and do they have to tell anyone as their last assessment letter had no end date (I read this to mean you didn't have to inform them unless you thought you should be entitled to MORE money?). Also they desperately need some home improvements ie changing bath to shower as they find it difficult to get into bath, swapping normal cooker for double oven as difficult to bend down to, and car ready to collapse. If they used any of the money for these things would that be classed as deprivation of assets? What a minefield this area is - I'd really love to put their minds at rest. PS Trying to get them an appt with CAB or Age Concern but this could take a while so any advice given now greatly appreciated.

KimYeovil

chris8 wrote: »

do they have to tell anyone as their last assessment letter had no end date (I read this to mean you didn't have to inform them unless you thought you should be entitled to MORE money?).

Ha, ha, very funny. That is a joke, yes?

Why not just inform the pension payers of the change of circumstances and let them decide?

Torry_Quine

No it's not a joke.

If you get Pension credit you often get an award which states that you don't need to contact them about financial changes unless you think you are entitled to more money.

anmarj

chris8 wrote: »

C Parents they have to tell anyone as their last assessment letter had no end date (I read this to mean you didn't have to inform them unless you thought you should be entitled to MORE money?). .

correct, if they have an increase in savings they do not have to tell Pension Credit, unless they have a life changing event that means the Assessed Income period ends then yes they have to declare the capital.

Over 80's were predicted to have less changes to their income so that is how the assessment does not have an end date. If the capital changed ie went less that what is declared on the assessment form then they could contact the Pension Service to ask for a review of capital ie when they applied they declared £20,000 and savings were now £10,000 they could send in verificaiton of the savings and Pension credit would be reivewed and payment increased. if savings were £20,000 and then increased to £30,000 then it will not need to be declared.

As long as they are in recepit of Guranteed credit the council will not look at the increase either. if their element of Pension Credit is savings credit only (award letter will state) then they have to let council know for them to re do an assessment, as they are not eligble for the qualificaiton under PC

chris8

Glad I've given someone a laugh today, even if it was unintentional! However, this is exactly why I posted, I interpret something one way and then it appears I am wrong...........or am I! Sure of one thing though....I'm still utterly confused and need more advice!:)

anmarj

chris8 wrote: »

Glad I've given someone a laugh today, even if it was unintentional! However, this is exactly why I posted, I interpret something one way and then it appears I am wrong...........or am I! Sure of one thing though....I'm still utterly confused and need more advice!:)

just ignore them

chris8

Thanks anmarj, that's very helpful. You don't happen to know what the limit is on savings and are savings considered individually or jointly?

anmarj

chris8 wrote: »

Thanks anmarj, that's very helpful. You don't happen to know what the limit is on savings and are savings considered individually or jointly?

No problems, I work on PC.

there is no upper limit on savings, although it is different for council tax but if they are on gurantee credit it will not matter as they have to ignore the savings if above their threshold. savings are all counted together regardless of sole or joint ownership. if something happened and one went into care and held in joint names then that amount would be halved ie 1 account in joint names £5,000 and 3 in sole names £10,000, then capital would be £12,500.

Whiteknight

The problem with Pension Credit is that it is not a case of someone having a certain amount of savings and not being entitled. Because it is an income based benefit that looks at the overall income someone could be entitled if they had what could be considered to be a lot of savings (over £40,000) while someone else could have only £16,000 and not be entitled to anything.

I would not say that there is no upper limit on savings as you will eventually hit the point where the income including the amount from savings over £10,000 meets the amount the Government states you should have to live on.

So to answer your question from a Pension Credit point of view savings over £10,000 would affect benefits. Do you mind me asking how they came into the money that is affecting their savings?

anmarj

Whiteknight wrote: »

T Do you mind me asking how they came into the money that is affecting their savings?

he has put in orginal posting that they have been left money

chris8

Whiteknight wrote: »

.Do you mind me asking how they came into the money that is affecting their savings?

It has come from an inheritance.