Capital Rules for Direct Payments

SandraScarlett

I have a print out giving the details of my husband's Direct Payments and the amount he has to pay, until 7th April. I'm confused about the section under Capital & Property, and wonder if somebody could please help me.


On some sites it says that if you're over Pension Credit age, that £10,000 is disregarded, and you then lose £1 for every £500 above this. On others it says that £14,250 is disregarded and you lose £1 for every £250 above this.


Does anybody know, please, what the rate is for 2013/14 and also 2014/15, as I assume his contribution will rise, to take account of his SRP increase?


Also, I cannot seem to grasp the rationale behind these figures. Is it being suggested that if you had £15,250 you would receive £4 interest, a week, for that extra £1,000?


If so, could somebody tell me which Building Society to take my piggy bank to, cos I'd love to get £208 a year interest on that £1,000!!


xx

xylophone

This is "deemed" or "assumed" income/interest of over 10% - I wish!

http://www.entitledto.co.uk/help/savingsassumedincome.aspx

Icequeen99

The rules you are quoting are for benefits. They are national rules.

For direct payments, the rules are different and the amount you have to pay can vary from one LA to another as they have different maximum amount contributions. There should be a document called 'charging for non-residential services' or similar that your LA has where you can find the info.

The Government's guidance on charging assessments for residential services (which is what my LA use for non-residential) is £14,250 disregarded and every £250 over that is treated as £1 of income. Above £23,250 you normally have to pay the full amount. It doesn't look like it has changed for 14/15.

IQ

SandraScarlett

xylophone wrote: »

This is "deemed" or "assumed" income/interest of over 10% - I wish!

http://www.entitledto.co.uk/help/savingsassumedincome.aspx

Wow! And there was me thinking some building societies are only offering 0.25%!

Icequeen99 wrote: »

The rules you are quoting are for benefits. They are national rules.

For direct payments, the rules are different and the amount you have to pay can vary from one LA to another as they have different maximum amount contributions. There should be a document called 'charging for non-residential services' or similar that your LA has where you can find the info.

The Government's guidance on charging assessments for residential services (which is what my LA use for non-residential) is £14,250 disregarded and every £250 over that is treated as £1 of income. Above £23,250 you normally have to pay the full amount. It doesn't look like it has changed for 14/15.

IQ

Thanks for that, I've found it, amongst the small print on the "Charging For Residential Services" document from my LA. Well that gives me every incentive for buying my husband a new riser and recliner chair!


I'm surprised the deemed or assumed income hasn't been challenged before, in Parliament, but what do I know!


xx

SandraScarlett

longtomboy wrote: »

You simply can't spend some of the capital if, as you are clearly suggesting, the sole or main reason is to reduce your capital for assessment purposes. You can spend a reasonable amount so long as in doing so you were not aware that in doing it would result in a lower contribution level.

Yes of course. Thank you for pointing that out. But his current chair operates only on an intermittent basis, and he's spilt so much on it that it needs replacing.


So I'll do that. Eventually.


xx