Benefits & Pension income

loucroft

hi all

all rather more negative than I thought it would be... simply put, she has been left with nothing and has had to depend on benefits for a year because she cannot work and depended on my dad. I thank you for your feedback, however there is not a reason to believe she is claiming more/less than what she has worked for/is entitled to.

The only plus side is that, if the house sells, she will have half of the equity, the house has been up for sale before when they decided to sell it, and went up again for sale yesterday. The rental income is simple paying for 90% of the mortgage.

Her pension is something she worked hard for, she will flitter it away if it is in her account, so has chosen to give the one-off payment away to those that have helped her in the past, and to those who will no longer benefit from the house sale. She will of course not take benefits once the house is sold.

The question today is whether she gives it away or not how does it affect her? I'm calling on experience and thank you in advance

L

loucroft

Oldernotwiser wrote: »

If she receives any means tested benefits, has she declared that she owns half a house?

yes of course, she is receiving the benefits she is entitled to - we have no reason to doubt here, this is a question about forecoming income not what she gets now

Bogof_Babe

I'd have thought she'd be wiser to forfeit the lump sum and take a bigger monthly pension. That would then be assessed as her "income" for calculating any housing/council tax benefits she might be entitled to.

Especially as she never intended to keep the lump sum anyway.

How old is she, and what benefits does she currently receive?

loucroft

Bogof_Babe wrote: »

I'd have thought she'd be wiser to forfeit the lump sum and take a bigger monthly pension. That would then be assessed as her "income" for calculating any housing/council tax benefits she might be entitled to.

Especially as she never intended to keep the lump sum anyway.

How old is she, and what benefits does she currently receive?

she is 53 and 6 months ago they were not going to pay her anything, now they have decided to pay her a lump sum plus. She has only received housing benefit since 4th Jan, this year, and has had to pay for other things such as electric and gas on what I believe is incapacity benefit, since mothers day last year.

The other half has emptied the accounts that were.

Bogof_Babe

I'd be surprised if she's on incapacity benefit. More likely to be ESA or JSA. At 53 she's a fair way off state pension age, and as far as I'm aware she wouldn't have been allowed to draw her work pension until 55, so I'm confused about what she has actually been granted. Maybe the rules are different if ill health is a factor. Has she been told she will never be fit enough to work again?

Also when you start to draw an employment pension you usually get a choice of whether to have a lump sum and therefore a reduced monthly payment, or a larger monthly payment.

What did the letter she has received say?

McKneff

Normally you can only take an occupational pension when under 55 if a GP has said that you will never, ever be capapble of any kind of paid employment ever, if she has got this confirmation then she is entitled to the pension. But, if she gets better and is found to be capable of work, the pension will be stopped.

loucroft

I believe that she has had confirmation from her Doctor that she will not be fit for work, she doesn't think lightly of this please believe me, but of recent years her health has seriously deteriorated so I'm guessing they will pay out early due to that.

Thanks everyone your replies help, however we still wonder about the original post if you have any comments/experience on that one

thanks again
L

Bogof_Babe

You say she has "declared herself homeless". Where is she living, and is she receiving full LHA?

It's very hard to advise you because there are so many unknowns. What money is she currently living on? What benefits is she claiming?

McKneff

You ask in your OP if it will affect her benefits but can you say

What the lump sum will be

What benefits is she receiving.

As said, she cannot give her lump sum away. Any benefits that she gets/applies for will be calculated on her still having the lump sum.

No one can help you or your mam without figures.

[Deleted User]

loucroft wrote: »

she is 53 and 6 months ago they were not going to pay her anything, now they have decided to pay her a lump sum plus. She has only received housing benefit since 4th Jan, this year, and has had to pay for other things such as electric and gas on what I believe is incapacity benefit, since mothers day last year.

The other half has emptied the accounts that were.

as i understand it since a change in the law you cant take a pension till you are 55,however it maybe different where illness is involved,but i`d check that one
if she is only receiving IB then it might not be affected by savings etc if its cont based
does she have any care and or mobility needs?if so she could apply for DLA which isnt means tested