Housing benefits and pension credits

kenstewar

Anyone come across this situation
I am 4 mounts away from state pension my wife and i are currently on pension credits, in two years we have to clear the mortgage,and will be unable to do that, as over the years had to cash in the insurances, So planning on selling my house I have been in it for 25 years so feel rather than be pushed out I would jump now,on my terms as I also am frightened of how it will effect me,so i would rather do it a bit slow
I have talked to the pension credit people and our local council they both say the same.I can move out and they will help pay rent and tax but only for six months. understandably as some would take the ' !!!!' otherwise. Although we could apply for an extension.
Now when the house is sold we can only take the first £10,000 into consideration,after that it would seem they take £2 per £1000 of the pension credit award and we would get no housing relief.I asked what happens when we spend some of the money as we would to live ,comes the answer than make a change of circumstance application,
Does that mean every time we go to asda or Morrison and spend some money we make an application ?
Is there some guide lines on this ?
or do i bet and loose all on the race track or a poker game

thanks in advance for any that reply i really do appreciate it

princessdon

There are guidelines (google depravation of capital). My understanding is that it is common sense.

Eg if you have £100K from the sale - you loose you PC. Then you live of this as you would normally. Eg if you normally have a holiday you can, if you choose to take yourself and 30 grandkids to Florida they may look at it.

If you give a grandchild some cash for passing exams - that is OK, if you give them £40K they'd look at it.

Don't forget once you are at the "lowest savings" for PC (sorry I don't know the amount) you claim again and even if the result is 1p you get HB and CTB etc as a passported benefit.

In otherwords before any large purchases/spends ring up and ask for advice before doing so.

thorsoak

If you do sell your house and you have a sum left over after the mortgage is repaid, then you can do what Pension Credit would expect you to do ....invest it to give you a (small) income.

Obviously moving home will cost you money - this would not be seen as deprivation of capital - unless of course you go for gold-plated accessories etc. You live on your pension, plus the interest on your savings - which is what we did when we sold up and downsized.

When my OH died, my pension credit would have been so small (less than £10 per month) after taking into consideration my small (less than £150 per month) private pension and interest on savings (less than £150 per year) - that I thanked them kindly - and got myself a job!