Pre Pensioner with HB/CTB queries please :-)

luminated

I was hoping to get through to my state pension without having to claim HB/CTB but poor health significantly shoved up my living costs even though I get DLA HRM/MRC for most of this year. The extra money has been largely used paying for services I can no longer perform myself. However I have no wish to moan but ask some Q's.

1) If you are below the £16,000 savings limit, and are eligible to claim, how often do you need to report your exact cash (from all sources) assets as they will drop down every week/month and so vary.

2) If you get the benefit are you able to increase your standard of living without being penalised and without the LA every week demanding to know where the extra money went?

I am 64 and have not been able to work for five years during which time I have lived off my savings, a small old private pension and in more recent times my wifes state pension. I have been on DLA since February.

Any help would be good

krisskross

Have you been assessed for pension credit?

xylophone

to increase your standard of living

I don't quite follow this. What had you in mind?
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018926

helpfulperson

As krisskross says, you should look at claiming Pension Credit. If you get awarded Guarantee Credit, you will not have to report any changes to HB as you will be 'passported' to it.

Of course, you may already have applied for Pension Credit and been turned down because your occupational pension plus you wife's State Pension puts you over the limit for a couple. If so, you should see whether a claim for Carers Allowance by your wife will help. She may not be paid any Carers Allowance because her State Pension is greater than the Carers Allowance, because you cannot get paid both. However, her 'underlying entitlement' to Carers Allowance will add an extra carers premium on top of the basic couples limit for Pension Credit, so you may then qualify for it.

It goes without saying that should you qualify for Pension Credit now, then your wife should claim Carers Allowance to boost the amount of Pension Credit.

Don't delay making a claim for Pension Credit. It can only be backdated 3 months.

luminated

xylophone wrote: »

I don't quite follow this. What had you in mind?
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018926

I guess what I mean is that if I have been living very frugally, which I have, and then find extra in my monthly income because of the HB/CTB can I spend the extra on extras (lunch out type of things) or will the systematic checking by LA on my eligibility show that I have been depriving myself of my capital by this spend (on extras) thus putting the HB/CTB at jeopardy.

luminated

krisskross wrote: »

Have you been assessed for pension credit?

Yes and current income too high.

luminated

helpfulperson wrote: »

As krisskross says, you should look at claiming Pension Credit. If you get awarded Guarantee Credit, you will not have to report any changes to HB as you will be 'passported' to it.

Yes but as mentioned in last pots my income too high

Of course, you may already have applied for Pension Credit and been turned down because your occupational pension plus you wife's State Pension puts you over the limit for a couple. If so, you should see whether a claim for Carers Allowance by your wife will help. She may not be paid any Carers Allowance because her State Pension is greater than the Carers Allowance, because you cannot get paid both. However, her 'underlying entitlement' to Carers Allowance will add an extra carers premium on top of the basic couples limit for Pension Credit, so you may then qualify for it.

Thanks when I was given DLA my wife made a successful claim for CA but as she is over 60 on state pension she has no payment but the 'underlying entitlement' which adds a useful premium on HB/CTB

It goes without saying that should you qualify for Pension Credit now, then your wife should claim Carers Allowance to boost the amount of Pension Credit.

Don't delay making a claim for Pension Credit. It can only be backdated 3 months.

Thanks for you help it is much appreciated.

margaretclare

What's this £16,000 savings limit mentioned in post # 1?

I thought there was a £6,000 limit somewhere - where did £16,000 come from?

pmlindyloo

margaretclare wrote: »

What's this £16,000 savings limit mentioned in post # 1?

I thought there was a £6,000 limit somewhere - where did £16,000 come from?

If you have savings of over £16000 (and not entitled to Pension Credit) then you are not eligible for HB and CTB.

For any savings between £6000 and £16000 there is a deduction on HB and CTB. (Lower limit is £10000 for the over 60s)

luminated

margaretclare wrote: »

What's this £16,000 savings limit mentioned in post # 1?

I thought there was a £6,000 limit somewhere - where did £16,000 come from?

As pmlindyloo says it is £16,000 and I have entered all my details into turn2us to get my estimates.

BigAunty

luminated wrote: »

I guess what I mean is that if I have been living very frugally, which I have, and then find extra in my monthly income because of the HB/CTB can I spend the extra on extras (lunch out type of things) or will the systematic checking by LA on my eligibility show that I have been depriving myself of my capital by this spend (on extras) thus putting the HB/CTB at jeopardy.

You should only encounter issues if you are deemed to have deliberately deprived yourself of capital in order to claim means tested benefits. It's about intentionality, the DWP or council has to prove this, and there is no explicit expectation that a benefit claimant has to spend their capital in similar rates to their benefit income.

If you find the DWP Decision Makers guide on Deprivation of Capital and read it (its their staff manual so it's inside info), you will see that it views very dimly things like claimants transferring their savings, investments and properties to others just so they can qualify for HB/CT. I know you don't get tax credits but the HMRC have similar guidance for their staff in identifying the excessive abuses of a few claimants.

In previous discussions on this issue on this forum, claimants have been advised that there should be no issues with them paying for things other than just basic living expenses so long as they don't go berzerk and buy a flash sports car or 10 week cruise or something. There should be no issues with things like purchases of furniture, repairs, refurbishment of property, having a holiday, buying a replacement car and so forth so I would think your worry over social expenses is without foundation.

Councils do check - keep receipts. Dig up the Deprivation of Capital threads on this forum and use Google to uncover more info on how the rules operate. Don't feel you need to live a frugal subsistence life - the rules are there to prevent people from intentionally abusing the benefit system.