council tax benefit and pension credit

minibreadstick

hello. I am thinking of moving in with my mum who currently lives on her own. It would be me (a stay at home mum), my 3 year old and 1 year old, and my husband who is self employed. My husbands salary varies but at year end is likely to be either just under, possibly over the higher rate tax bracket. We are doing it to save money (while our new business is set up) and because my mum is getting older and we want to give her some company for a while. My concern is around the implications for my mums benefits. My mum currently gets council tax benefit and almost full pension credit. Would her liability for council tax change if we move in? And would there be any impact on her pension credit, and if so what? I don't know how long we'll be with my mum, it could be a year or so, or maybe longer. Many thanks.

pmlindyloo

minibreadstick wrote: »

hello. I am thinking of moving in with my mum who currently lives on her own. It would be me (a stay at home mum), my 3 year old and 1 year old, and my husband who is self employed. My husbands salary varies but at year end is likely to be either just under, possibly over the higher rate tax bracket. We are doing it to save money (while our new business is set up) and because my mum is getting older and we want to give her some company for a while. My concern is around the implications for my mums benefits. My mum currently gets council tax benefit and almost full pension credit. Would her liability for council tax change if we move in? And would there be any impact on her pension credit, and if so what? I don't know how long we'll be with my mum, it could be a year or so, or maybe longer. Many thanks.

Not sure what you mean about the 'almost full pension credit' Does she get guarantee pension credit or savings pension credit ?

Your mum's Pension Credits should not be affected as they do not take into consideration any living costs that you will give her. But since I am not sure what she is receiving then you could check with them.

However, her council tax reduction will be affected as you are counted as non dependents and as such are expected to contribute towards this cost. There are exceptions where they do not take non dependents into account e.g. if your mum is over 65 years and receives the care component of Disability Living Allowance or Attendance Allowance.

You can go onto your local council website to find out how much the non dependent rates are (or telephone if they don't give them)

If you move in with your mum then you will need to inform the local council about the change of circumstances and they will adjust the council tax reduction if necessary.

Housing_Benefit_Officer

She would lose her 25% single persons discount but her Council Tax Support would increase by 25%.

As you Mum is a pensioner on Pension Credit there is no non dependant deduction for 26 weeks where a non dep moves into a pensioners home.

minibreadstick

hi

thanks for your replies! my mum gets almost full pension credit becuase she has a very small earnings related state pension from her NI contributions but this amounts to a couple of pounds a week. i dont know the exact figures but the rest is topped up to full pension amount by pension credit.

i'm really confused about non dependent deductions! we can afford to pay the council tax and cover any gap created by a loss in council tax benefit but we cant afford to cover any loss in pension...i did the benefits calculator i found on this site and it said that my mum would still get full pension credit, that would be a relief if its true because then we could make this move...

housingbenefitofficer, what do you mean about 26 weeks, would her pension credit be affected after that? and how do i find out by how much? because we cant make this move just for a few weeks, it may not be years, but we need to know that it would be for a year or so at least.

princessdon

Her pension credit is unaffected as it is household income, you are not her household. They were referring to council tax benefit, of which she will lose some as you are a none dependant.

Housing_Benefit_Officer

Basically when you move in there is no non dependant deduction for 26 weeks. After 26 weeks they will take a deduction depending on you and your husbands income. Pension Credit in unaffected by you being part of her household.