OAPs and savings

sparklysaver

Hello all, hoping someone can help with a bit of advice;

My grandparents moved from their council house into housing association sheltered housing about 14 years ago. At this time, the HA sent a finance person round to discuss their rent etc, and we discovered that they hadn't been claiming any benefits other than the state pension. My grandad has a small works pension and, like a lot of people of their generation, I think they didn't want to be seen as "a burden" so hadn't claimed anything else even though they were really struggling. The finance lady talked them into applying for HB & Council tax benefit, which they got, and so they were a little bit more comfortable for the next few years.

3 years ago, by which time my grandad is 89 and has had 2 heart attacks and my granny is 85 and has had 3 joint replacements and has arthritis in her spine, they're still fiercely independent but my mum decided to apply for a blue badge for her car so she could take them out shopping, instead of them getting the bus everywhere which they were still insisting on. When she enquired about the badge someone pointed out that they could be getting DLA, so she talked them into a applying and they were assessed and awarded something (they've never told us exactly what). So now they occasonally get a taxi instead of the bus, and get a cleaner in once a week.

The whole family still chips in to help them out when we can, for example my brother bought them a digibox because they were stressed about digital switchover and said they couldn't afford a new TV. We had all been discussing whether or not we could afford to get them new carpets for christmas, because the ones they have down are threadbare and they keep putting trip-hazard mats down to cover the holes. My mum drives them everywhere and has never asked for petrol money, in fact she usually treats them to their lunch so she's confident they're getting a hot meal at least once a day.

Last week, my granny announced that they were getting their housing & council tax benefit withdrawn, because it turns out they've been saving most of the DLA payments, consciensiously updating the council every time they add something to their savings account, and have just tipped over £16k. :eek:

So they're now all upset because they think they're going to have to tighten their belts to cover the shortfall. I know the obvious answer is SPEND THE SAVINGS!! because god alone knows what they think they're saving up for, but can anyone advise how this works? If they went out and re-carpeted their flat tomorrow, would that be OK or would anyone wonder why their savings have suddenly plummeted just as their benefits are withdrawn?

We're not trying to get them to fiddle the system, we're just annoyed that they've still been using buses, eating cold food and not switching the heating on when they had the money to do it and should have been spending it all along. :mad::mad: At the end of the day it's their money and if they want to save it we can't stop them, but if I was clearer on the details I would feel happier advising them.

Thanks in advance for any advice.

nannytone_2

it won't be DLA that theyre receiving, because the age limit has always been 65. it's most likely AA ( attendance allowance)

they can spend savings on 'essentials' and carpets, white goods and the like come into this area.
problem i see is that ionce they spend enough to get housing benefit again, they will still be saving and so the issue will occur again.

sparklysaver

Thanks for your reply. Yes, it probably is AA - like I say, they're very independent and don't like discussing the details, so I've got this one confused.

If we can get them to buy new carpets etc. then start actually spending the money on things they need, like they should have been doing all along, then they should be OK. But then that's an entirely separate issue I suppose!

Thanks though, now we just need to convince them.......

Pollycat

sparklysaver
I think you need to find out exactly what benefits your grandparents are getting and how much.

If they are getting guarantee pension credit, the £16K savings threshold is ignored when looking at eligibilty for CTB & HB.

Take a look here:
http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_10018692

There's a Pension Credit calculator which is easy to use (assuming you know the amounts of benefits and savings).

Are they getting the mobility element of DLA (which I think is excluded as income) or the care component as well (which is classed as income)?

sparklysaver

Thanks Pollycat - I've just had a nosey around online and I think nannytone is right, it must be AA rather than DLA, which looks like it's not counted as income.

I assume they're not getting guarantee pension credit, so we will have to see if they can. Getting details out of them is like getting blood out of a stone though - I can completely understand that they want to stay independent and not be a burden to anyone but it's a bit frustrating too! Will go through that link and see if I can convince them to give any of us actual details. Fingers crossed!

Pollycat

I do hope you can persuade them to claim whatever benefits they are entitled to.

Tell them that if the Government says they are entitled to it, they should claim it.

And try to persuade them to spend some of the benefits they are getting on taking care of themselves - whack the heating on when it's cold, pop down to the local chippy for a fish and chip supper and buy decent food every day.

Let us know how you get on.

sparklysaver

I will give it my best shot! Thanks for the advice.

nannytone_2

my in laws are exactly the same.

they have over £1,900 a month coming in. DLA, private pension, industrial injuries and state pension. yet they refuse to spend it and then complain that they cant get more hosuing benefit!!

i tell them......give it to me and i'll spend it for you lol

McKneff

And be sure to tell them its not charity, its their entitlement.

Good for you for looking out for them.

Hi Nannytone !!!!

nannytone_2

hello mckneff!!!!

Macro_3

It's really common, sadly. There seem to be loads of pensioner couples who are obviously stashing their money into savings accounts whilst living frugally and losing HB/CTB/etc. I think living minimally and saving for a rainy day is a hard habit to break for the elderly.

Makes me determined to ensure when I get old that my pension is spent [STRIKE]on gin and young men[/STRIKE] making life more comfortable.