Advice for my parents - regarding benefits and 2 homes

HB58

I believe that Pension Credit can be paid for a man at the age at which a woman born on the same date would be due for the State Retirement Pension.

pretzelnut

HB58 wrote: »

I believe that Pension Credit can be paid for a man at the age at which a woman born on the same date would be due for the State Retirement Pension.

I dont understand what you mean.

xylophone

I dont understand what you mean.[/QUOTE


https://www.gov.uk/calculate-state-pension/y

Torry_Quine

pretzelnut wrote: »

I dont understand what you mean.

If a woman would be old enough to claim pension credit then a man of the same age can as well even if not old enough to claim the actual state pension.

pretzelnut

Torry_Quine wrote: »

If a woman would be old enough to claim pension credit then a man of the same age can as well even if not old enough to claim the actual state pension.

Thanks but my mum is only 49, where as my dad is 62. So where as my dad is entitled to claim pension credit due to his age for them as a couple, as he is the oldest, it will change to only my mum being able to claim when UC comes into force in october, and as you can see she's a long way from the required age.

I hope I'm understanding what your saying to me.

I have my own issues and my brain function is suffering terribly ATM.

Mojisola

I would ask AgeUk if an advisor would do a benefit check. They will look at what they can claim and will help fill in the forms.

Rather than tackle it bit and bit, get a trained person in who will deal with it all in one go.

pretzelnut

Mojisola wrote: »

I would ask AgeUk if an advisor would do a benefit check. They will look at what they can claim and will help fill in the forms.

Rather than tackle it bit and bit, get a trained person in who will deal with it all in one go.

They have a benefits advisor from the council who has helped with DLA and carers.
They phoned her for an appointment but with all the benefit changes recently and ones coming yuo, she is incredibly busy and appointments are restricted to appeals ATM.

As soon as they fill in the HB form, the benefits advisor will be made aware of the application. As my parents are already on her books, and she can them help if needed. Luckilly the HB forms don't seem to complicated to fill in.

Ill look into AgeUK however in the meantime, thank you for that.

Housing_Benefit_Officer

pretzelnut wrote: »

Thanks but my mum is only 49, where as my dad is 62. So where as my dad is entitled to claim pension credit due to his age for them as a couple, as he is the oldest, it will change to only my mum being able to claim when UC comes into force in october, and as you can see she's a long way from the required age.

I hope I'm understanding what your saying to me.

I have my own issues and my brain function is suffering terribly ATM.

Pension Credit isn't included in Universal Credit.

If they qualify for Pension Credit then there is something called an Assessed Income Period (AIF). During the AIP any capital received (such as from a house sale) is disregarded for the period of the AIF.

I know claimants with £100k + in their bank accounts but will still get all their rent and council tax paid because they get Pension Credit - Guarantee element - but acquired the capital during the AIP - so because of a quirk in the legislation a millionaire could get Pension Credit and all their rent and council tax paid for 5 years if they acquired their capital during the AIP.

If your Step-Father and Mother are entitled to Pension Credit Guarantee Element (especially if your Mother gives up working) - and if they get an assessed income period then they don't have to notify the Pension Service of the capital from the sale of the house - and they would still get full rent and council tax paid for the length of the AIP - even if the AIP was for 5 years!

This may seem wrong especially with £80k in the bank - but that is how the legislation is written.

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/pc10s-guide-to-pension-credit/assessed-income-period/#capital

Changes to capital during an assessed income period

Your customer does not have to tell us about changes to their capital during the assessed income period. However, if their capital changes and they think they could be entitled to more Pension Credit, they can tell us and ask for their Pension Credit to be recalculated. If this happens, we will ask for details of all (non-state) pension, annuity income, any equity release payments and capital at that point.

If the total is less than the figure we have been using, their Pension Credit will go up. If the total is the same as, or more than, the figure we have been using, their Pension Credit will stay the same.

anmarj

Housing_Benefit_Officer wrote: »

Once the property is sold and they receive the money from the sale it is automatically treated as capital (unless you are a pensioner receiving Pension Credit Guarantee element - then the capital will be disregarded for your Assessed Income Period). If you splurge your capital on a massive spending spree then you will be treated as depriving yourself of capital and you will be treated as still holding your capital.

Has your Father applied for Pension Credit? If he gets Pension Guarantee Credit before he moves once he has sold the property the capital will be disregarded for the AIF period - even if that period is for 5 or more years...


Also ask about the Assessed Income Periods and if the capital from a house sale will be disregarded in full.

Carers Allowance is treated as income.

Working Tax Credit will stop.

Disability Living Allowance is disregarded in full.

The Couple Rate for Pension Credit is £220 per week (I think) May be higher.

I should add I do not know the full rules regarding Pension Credit, AIF and capital disregards - you will need to get advice from the Pension Service.

AIP can only be set when one person is over 65, the father is under, so therefore AIP's are not applicable.

if your customer is 65 or over, or if they have a partner and one of them is at least 65 and the other is at least 60, an assessed income period may apply. This means that they do not need to report changes to pensions(we treat payments from the Pension Protection Fund or Financial Assistance Scheme in the same way as a pension), annuities, equity release payments or capital as they happen. Other changes in circumstances still have to be reported.

If he had been over 65, and a property is up for sale at the time of application, then an AIP would not be set, as he has a change in his provision for retirement.

The assessed income period normally lasts for five years. It may be shorter if, for example:

• your customer or their partner will be 65 in the next five years, or
• they expect a second pension or annuity to start or change within the next 12 months (other than because of a normal yearly increase), or
• they expect their capital to change significantly in the next 12 months.

Short AIP's are very rarely set, it tends to be if that a change is occuring then the AIP will not be set and they have to report all changes to income.



If your father was on Pension Credit when Universal credit comes in, they still stay on Pension Credit, they are not forced to convert to universal credit, that would only apply if they tried to apply after it came in.

Housing_Benefit_Officer

anmarj wrote: »

AIP can only be set when one person is over 65, the father is under, so therefore AIP's are not applicable.

If he had been over 65, and a property is up for sale at the time of application, then an AIP would not be set, as he has a change in his provision for retirement

I've learned something about AIPs

So 26 weeks disregard of house as capital with potential extension for a longer period if still for sale.