Pension credit (guanteed part)

averageguy11

Hello

Once awarded....can it be taken away a couplr of years later if a persons circumstances change?

I ask as a friend currently has her state pension topped up with this credit, but now has inherited some cash (about 20k) and a small stake in a house which pays no income but is obviously capital.

Thanks for any replies.

McKneff

Yes it can be taken away if they are not entitled to it.

Sounds like your friend should be ringing the DWP and declaring it.

She may still be entiteld to it but also may not.

She doesnt want to be done for fraud down the line, which is what will happen if it comes out that she hasnt.

Whiteknight

averageguy11 wrote: »

Hello

Once awarded....can it be taken away a couplr of years later if a persons circumstances change?

I ask as a friend currently has her state pension topped up with this credit, but now has inherited some cash (about 20k) and a small stake in a house which pays no income but is obviously capital.

Thanks for any replies.

Yes, unless your friend has an Assessed Income Period.

As already mentioned your friend should contact the Pension Service.

Just because the circumstances have changed does not automatically mean they will lose the Pension Credit but it could be reduced.

djh22

Not so straight forward as it seems, the £20k would attract addition capital tariff income which on it's own wouldn't necessarily end their entitlement but it most certainly would reduce it. The value of the share of the property might be treated in the same way,unless they are trying to dispose of it in which case it could be disregarded for a period of time,likewise if there is an elderly relative presently living in the property or if it was previously left due to estrangement.
Your friend's entitlement is at least going to be reduced so they should contact The Pension Service immediately.

Mojisola

Whiteknight wrote: »

Yes, unless your friend has an Assessed Income Period.

As already mentioned your friend should contact the Pension Service.

This happened to my parents but because they were in an AIP their benefits didn't change at all. Notify the DWP and see what they say.

averageguy11

Many thanks for all your advice

Ps ..what's an assessed income period?

Mojisola

averageguy11 wrote: »

Ps ..what's an assessed income period?

It's a time during which your PC is set even if you receive a lump sum. It should say on the paperwork whether you have one and when it will end.

If your income or capital levels change for the worse during an AIP you can be reassessed and get a higher level of benefits.