MSE Pension Credit Guide 17 March 2014 at 4:44PM edited 30 November -1 at 12:00AM in Pensions, Annuities & Retirement Planning 10 replies 29.3K views

MSE_Helen_S

Hi!

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Pension Credit guide.

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Thanks folks,


Helen

Murphybear

I'm helping a friend sort out his Pension Credit and am having trouble understanding the Government thinking.

Until recently he has been claiming state pension plus a small amount of a Guarantee Credit and Savings Credit.

He is about to claim a private pension which will take his total income to £185 a week plus a lump sum of £18,000. Now they are assuming he gets £18 per week from this which is, of course, ludicrous as savings rates are nothing like that!

He has been told (and this is the bit I don't understand) that he can claim savings credit of £16.80 a week as they pay 60 p in the pound for qualifying income from £130.35 - £148.35. BUT they then say we take off 40p in the pound of the total income from £148.35 - £190.35 which is also £16.80 so he won't be entitled to anything. I have read lots of benefit advice for him and couldn't see anywhere about them taking back the money.


Can anyone provide some sort of Gov reasoning?

Many thanks

xylophone

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true

See http://forums.moneysavingexpert.com/showthread.php?p=64992965#post64992965 post 2

songbird02

I am a single female, aged 65 yrs of age and claim state pension and a very small amount of pension credit, my mother gifted my brother and i a house which was recently sold at auction and the money has been split between my brother and my self, i also claim housing benefit and council tax. I phoned the housing benefit office to let them know of my change of circumstances, they asked me if i receive pension credit i told them yes, so they told me i need to let the pension credit ppl know, and if they are not interested niether are the housing benefit office. i couldnt believe it. Now this gift of money is £40,000 and i want to pay some debts off with some of it, and i want to gift £4,000 to my family. My debts and gifts will amount to £5,000, am i allowed to do this? Will i lose all my housing benefit and council tax benefits? I understand i will be expected to live off this gifted money, but when it has gone will i be able to claim housing and council tax benefits ever again? Thanks in advance for any replies!!

sleepless_saver

If you are in an Assessed Income Period for the pension credit then the Pension Service will not be interested, but your benefits will definitely be affected if you're not in an AIP. So you need to phone them to find out (or check your award letter).

If you are in an AIP then the pension credit and the housing benefit would both be unaffected, and you can do what you want with the money until the end of the AIP. .

xylophone

And see http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true

for a comprehensive explanation.

Cougargb

You might like to see the figures for 2015-2016

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382867/proposed_benefit_and_pension_rates_2015_to_2016.pdf

For those on Pension Credit Savings only, you will be shocked to see that the maximum you can get has been reduced from £20.70 pw to £17.43 pw

For me that means of the £301 a year increase of my pensions I will only get £124!

IMHO that is SCANDALOUS!

The fat cats get richer and the pensioners poorer!

sue_in_uk

Hi how does one know when one is in an assessed incme period please? I ahve exactly the same problem as Songbird02 in her post above. I began getting Pc and PC guarantee when I was 61, so I think I havenever been in an AIP period? But not I am 65 and in the coming months will receive about £45000 after my fathers house is sold. I ajve read the document on Pc as posted by xylphone but found it did not clearly answer how it will affect my PC amd housing benefit.

xylophone

Re AIP http://www.entitledto.co.uk/help/assessed-income-period

http://www.ageuk.org.uk/money-matters/claiming-benefits/means-tested-benefits/

"You will be treated as having ‘assumed income’ of £1 for every £500 (or part of £500) of capital you have above £10,000. If you have a partner, you will be assessed as a couple and the first £10,000 of your joint capital will be ignored."

"The lower capital limit for Housing Benefit and Council Tax Support is £10,000. If you have capital of up to £10,000 this, and any income you receive from this, are ignored. You will be treated as having assumed income on capital above £10,000 as set out above."

That is to say that the £30,000 over and above £10,000 will be assumed to generate £60 a week in income.

p00hsticks

sue_in_uk wrote: »

Hi how does one know when one is in an assessed incme period please? I ahve exactly the same problem as Songbird02 in her post above. I began getting Pc and PC guarantee when I was 61, so I think I havenever been in an AIP period? But not I am 65 and in the coming months will receive about £45000 after my fathers house is sold. I ajve read the document on Pc as posted by xylphone but found it did not clearly answer how it will affect my PC amd housing benefit.

This thread is over a year old so it's probably best not to rely on info posted in it as the rules may have changed. (Sorry, I don't know enough about PC and housing benefit to be able to answer your question - the benefits board might be a better place to post .
http://forums.moneysavingexpert.com/forumdisplay.php?f=139

anmarj

sue_in_uk wrote: »

Hi how does one know when one is in an assessed incme period please? I ahve exactly the same problem as Songbird02 in her post above. I began getting Pc and PC guarantee when I was 61, so I think I havenever been in an AIP period? But not I am 65 and in the coming months will receive about £45000 after my fathers house is sold. I ajve read the document on Pc as posted by xylphone but found it did not clearly answer how it will affect my PC amd housing benefit.

Aip only apply if you are over 65 when set or when part of a couple when one is over 65 and the other is over 60. It will be on any award letter you have if you qualify. If your are single and not 65 till after April 16, you will not get an AIP as it is be abolished from April this year