Will pensions effect benefits

gfplux

A friend needs advise.
He is presently retired due to disability but will reach official retirement age of 65 next year.
He presently receives a small disability pension from his previous employers plus a Pension credit (DWP-PC) plus Disability allowance (DWP-DLA)
He lives in Council property and his rent and council tax are paid for.
This all adds up to a modest income which he just about manages on.
He does not have savings of any note.

Next year he could/will begin to receive 3 additional sources of income. His State pension, plus two very small pensions from previous employments in the distant past.

The Question:- Will his benefits be reduced by exactly this extra income?
Thanks

seven-day-weekend

His Pension Credit and Rent and Council Tax Benefits are means-tested so all sources of income (except his DLA) will be counted for the means test. Therefore these benefits may be affected. His DLA will not be affected.

I do not know whether his income will decrease £1 for £1, I think not. Someone will be along soon who does know, I am sure.

anmarj

seven-day-weekend wrote: »

I do not know whether his income will decrease £1 for £1, I think not. Someone will be along soon who does know, I am sure.

it does for the guaranteed element, but he would be considered for the savings credit element which works on a slightly different basis

gfplux

a bump! hoping for more info.

seven-day-weekend

Your friend would be well advised to visit a Welfare Rights Advisor at the CAB who will be able to advise him on his own circumstances.

Mojisola

seven-day-weekend wrote: »

Your friend would be well advised to visit a Welfare Rights Advisor at the CAB who will be able to advise him on his own circumstances.

Good advice. His council should have Welfare Rights Advisors. They will look at his situation and everything he is receiving, sort out what he's entitled to and fill in the claim forms for him. They make it very easy to get everything right.

gfplux

Thanks everyone for your help and advise.

He will definately be seeking help from cab or similar.

We already think the strategy is to take cash and/or defer pension as money coming in as income will just disappear as reduced support.

With all the changes taking place because of the crisis the rules may/will change over the next few years. By deferring a decision now it may be to his benefit as he will be able to react to any change in the rules.

seven-day-weekend

I think if he defers his pension it may still be counted in the means test. Income that the claimant is eligible to receive, but doesn't, is counted as though they are drawing it.

Fair enough really, when you think about it, as means-tested benefits are there for those who don't have the means.