Pension and sons earnings ?

Lara-

Hello

I wonder if someone could please give me some advice about a letter my husband has received from the Pensions people.

Some background if it helps. My husband is 71 and I'm 60. Neither of us work. He also receives £72 odd a month from an opt out pension he had.

He'd deferred his state pension for 5 years and so I think he gets extra in his state pension for doing that, but don't understand the pension statement he got so I don't know how much it is.
Total from the DWP per week is £222 which includes £11 odd pensions guarantee credit and we also get a discount on our Council Tax.

Our 35 year old son lives with us and is a non dependant because he works for his own business and we don't support him. We don't charge him any rent but he does pay the mortgage and other bills and we pay for the food and other odd and bobs.

We've got no savings as such but I have just received a payout from my opt-out pension company under the trivial sum scheme. Total £14500. We have serious need of some home improvements so unfortunately, some of that will be spent on replacing a bathroom that hasn't been updated since 1984.

The DWP have written to my husband and want to know how much our son earns and although I could ask him directly, my husband feels that it is intrusive and would rather tell the DWP that he doesn't want any pension anymore. (my husband is an extremely stubborn man I'm afraid and at the age of 71 feels that for the first time in his life he's being asked to justify where he spends his money)

The DWP also want to know how much our mortgage is (?) but we don't claim the mortgage interest so I'm confused by it. We've got another 2 years before our mortgage (£32000.00) is settled by an endowment policy.

I suppose my question is, can the pensions people really ask us to justify where the pension is being spent ?

I think maybe this question should be in a different board but I'm confused about which one, so thought I'd ask here.

cte1111

I think the reason for the questions is because you receive Pensions Credit and Council Tax Reduction. They are dependent on income and savings but also on who else lives in your household (for the council tax reduction). This is why they are asking about your son's income.

If you wish to stop claiming these benefits, then you won't need to answer the questions. The pension itself will still be paid, as your husband is entitled to this independent of other circumstances.

Lara-

Thank you. That makes sense now !

Now I have to convince my husband not to give up his state pension altogether. Easier said than done though.

pmlindyloo

Are the council aware that you have a non dependent living with you?

Even if you are receiving guarantee pension credit a non dependent deduction will be made for a non dependent unless the claimant is receiving DLA care or AA.

Just a 'heads up' as you may find yourself with an overpayment of council tax if the council have not been informed.

As you have been receiving guarantee pension credit you would be entitled to have support for mortgage interest paid whilst on PC which is probably why they are enquiring.

xylophone

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true
would be worth a read.

Lara-

pmlindyloo wrote: »

Are the council aware that you have a non dependent living with you?

Even if you are receiving guarantee pension credit a non dependent deduction will be made for a non dependent unless the claimant is receiving DLA care or AA.

Just a 'heads up' as you may find yourself with an overpayment of council tax if the council have not been informed.

As you have been receiving guarantee pension credit you would be entitled to have support for mortgage interest paid whilst on PC which is probably why they are enquiring.

Hello and thank you for responding. Yes, the Council are aware our son lives with us and they have known since my husband started receiving his state pension. My son doesn't receive nor has ever claimed any benefits. He's fit and healthy and has never been out of work since he was 18 years old and although struggled for some years on a low income, we supported him financially.

Our mortgage interest is only about £130 a month so I don't think it's unreasonable to pay that ourselves rather than have any financial help from the State.

I think what it boils down to (following receipt of the letter) is that my husband thinks that owing to our sons income, the Government think we should be able to manage on just his income. My husband is not stupid just stubborn and dislikes the idea that he is on a benefit (State Pension)

We never claimed or received child benefit for our first child as he thought it outrageous that we would be entitled to help from the Government for choosing to have a child. When we had our 2nd child two years later we still didn't claim. Yet when he was about 6 months old I got a letter with a cheque for over £280 from the Child Benefit people apologising they couldn't back date it further than 18 months. Needless to say, I banked it.

Lara-

xylophone wrote: »

(I'm not allowed to post the link)
would be worth a read.

Thank you for providing that link. Lots to read !

Mojisola

Lara- wrote: »

The DWP have written to my husband and want to know how much our son earns and although I could ask him directly, my husband feels that it is intrusive and would rather tell the DWP that he doesn't want any pension anymore. (my husband is an extremely stubborn man I'm afraid and at the age of 71 feels that for the first time in his life he's being asked to justify where he spends his money)

The DWP also want to know how much our mortgage is (?) but we don't claim the mortgage interest so I'm confused by it.

pmlindyloo wrote: »

As you have been receiving guarantee pension credit you would be entitled to have support for mortgage interest paid whilst on PC which is probably why they are enquiring.

Your husband is being over-sensitive! As Lindy says, the DWP is trying to give you more money because you have an entitlement which you are not claiming - they aren't asking you to tell them anything about how you spend your money.

His and your pensions are not benefits - you get them because you paid NI while you were working.

anmarj

Because your son is living with you, a non dependent deduction will apply to the mortgage interest side of things ie if the weekly amount of mortgage interest is £35 per week but the DWP are applying the highest rate of deduction because they do not know what your son earns which is approx £91 per week then this will wipe out the mortgage interest that they could be paying, but they have to keep checking to see if circumstances change ie if your son had moved out then they would start paying the mortgage interest or if one of you got AA/DLA then this would over-ride the non dependent deduction.

Your son does not have to tell the DWP what he earns it just means that they will keep applying the highest rate of deduction allowed against the mortgage interest.

If you check your PC award letter it should show the mortgage interest applied to the appropriate amount, but it will then show a non dependent deduction being applied and wiping out any award for the housing costs.