Complex underlying entitlement query

bll78

Hi,

I asked a question on here the other day for a friend re IS and making a claim when they were only eligible for an amount once SMI kicks in, however this has not panned out.
They've now asked me another stumper. Basic details are worked all their life (so NI issues), he has got ill in last year, he's 61 she's 59. Currently live off
Occupational Pension
Other investment (12k in sons home assessed as £20 a week income)
DLA HRM MRC
Carers allowance

They are struggling a bit, and as above were considering an IS claim as this would help with the mortgage SMI but they realised they missed off their money in the sons house so actually they can't get it. However after making a mistake on the entitlement calculator (I told them to have a look) they've realised that the carers allowance is actually making them worse off.
The reason being the return on investement +carers allowance + occupational pension are classed as taxable income and so the IS claim is reduced. Without the carers allowance the IS seems to be made up to the same amount pound for pound. However by getting the IS instead of Carers Allowance they suddenly become eligible for the associated benefits i.e she will get free prescriptions. However this only works if they can keep their underlying carers entitlement. Is it possible to stop carers allowance before putting in for IS?
Before anyone starts slating them, they've worked hard all their life and would be on far more benefits if they hadn't have saved and invested in a pension. They won't get a penny more this way but will be entitled to free prescriptions. It seems odd to me that the money won't change a jot but getting one benefit instead of receiving another will suddenly mean they're eligible. I suppose it's similar to those families that get £15,000 in benefits and get a free boiler, and those that earn £15,000 but can't. It's a strange old system

[Deleted User]

maybe they should get a benefits check from cab or welfare rights,as it seems very complicated

specialboy

Ive got a couple of friends in similar situation, both single lads in rented houses, one works full time and earns a low wage but too much to get any help with his rent whilst the other works part time and is also on a low wage, gets help with his rent and also a little wtc. Both end up with the same disposable income but the one on wtc also gets free dentist and prescriptions.

t0rt0ise

When is she 60? She'll get free prescriptions then anyway, and he must be getting them already as he's over 60.

Icequeen99

Use this calculator here to find out when they can claim Pension Credit:
https://www.gov.uk/calculate-state-pension

It is more generous than IS and includes SMI but might not interact with the CA in such a way.

If they can hang on until then that might be an option.

IQ

Poppie68

I don't think it's possible to stop their claim for CA then put a claim in for IS, as it's the CA that will allow a claim for IS.

rogerblack

Poppie68 wrote: »

I don't think it's possible to stop their claim for CA then put a claim in for IS, as it's the CA that will allow a claim for IS.

Caring for someone on DLA or PIP at the right levels also entitles one to IS.

Poppie68

rogerblack wrote: »

Caring for someone on DLA or PIP at the right levels also entitles one to IS.

Right ok...i've always thought that for someone to claim IS on the grounds of caring for someone they also had to be claiming CA!

tomtontom

rogerblack wrote: »

Caring for someone on DLA or PIP at the right levels also entitles one to IS.

That is true but they would not be entitled to the Carer's Premium, which requires a claim for CA or no entitlement to CA due to an overlapping benefit. This may be an issue for the OP given the marginal figures involved.

bll78

t0rt0ise wrote: »

When is she 60? She'll get free prescriptions then anyway, and he must be getting them already as he's over 60.

He gets them, she doesn't, but there are other things too.

bll78

Icequeen99 wrote: »

Use this calculator here to find out when they can claim Pension Credit:
https://www.gov.uk/calculate-state-pension

It is more generous than IS and includes SMI but might not interact with the CA in such a way.

If they can hang on until then that might be an option.

IQ

Thanks they have years to go. She is one of those unfortunate ones that a few years ago was due to retire at 60, then they made it 65, now it's 66