Guaranteed Pension Credit

Sam_Fisher

Hi,

Does the limitations act applies to guaranteed pension credit i.e. they can not reclaim guaranteed pension credit overpaid 6 years ago. I am sorting out my dad's estate which i am finding very stressful as he passed away a few months ago and i now have probate.

Two weeks later i received a letter from the DWP asking for the value of the estate and i believe after sending this back they will send another letter asking for a break down, which from this they will workout they has been an over payment guaranteed pension credit as i have now found out from looking at the paperwork.

I was hoping they can only reclaim 6 years because of the limitations act or is this not the case and they can reclaim the whole amount?

sammyjammy

The 6 year rule only applies to the DWPs ability to take the claimant to court. They have the right to reclaim all and any overpayment from a deceased estate.

Repayments when someone has died
DWP can recover overpayments from a person’s estate.

Contact the Debt Management contact centre if the person who died owed a repayment.

If the estate shows the person who died shouldn’t have got the income-related benefits they were on, contact Debt Management Recovery From Estates instead.

Debt Management Recovery From Estates
Telephone: 0345 850 0051
Monday to Friday, 8am to 8pm
Saturday, 9am to 4pm
Find out about call charges

https://www.gov.uk/benefit-overpayments/when-repayments-have-to-be-made

pmlindyloo

Sorry for your loss.

The letter you hav received is automatically sent out after someone on PC has passed away. It does not necessarily mean that there has been an overpayment.

Find your dad's last PC award letter and look and see if he had an income assessed period. During the IAP he did not have to report any change in capital.

Is this why you think he had an overpayment ?

Sam_Fisher

Thank you both for your comments they are very helpful, I do have another question.
After doing I bit more research I have worked out that if my dad had been on saving pension credit which I believe is the right credit for him, he would have been given more money than he was already claiming, so he fact while he was overpaid guarantee pension credit if he had been on pension saving credit he was underpaid.

Could I argue this point to the DWP or is a deadend?

I have yet to hear back from the DWP so hopeful it won't come to this but it's always good to know

pmlindyloo

The saving credit part is very complicated to work out. Have you read this? There is a minimum amount of income you have to have had to be entitled (before the guarantee part)

http://www.which.co.uk/money/retirement/guides/state-pension-explained/pension-credit/

I am not sure that I totally understand what you are saying. Did your dad have an assessed Income period. If he did then any increase in capital would not have to be declared.

If you are saying that he should have declared it because he met the minimum income threshold and would have been entitled to the savings credit part then I see where you are coming from. If he was entitled to the savings credit part then the amounts are relatively small (although I know every little bit helps)

As to your question about offsetting the savings credit against the possible overpayment then it might be worth a try.

anmarj

Sorry I pad went bonkers! - There is a starting point which the qualifying income has to start at - current rate £120.35 per week - qualifying income is state benefits (apart from Incapacity Benefit, Severe Disablement Allowance, Working tax credits) tariff income (any savings above £10k) and any pensions (work or private) if the qualifying income is below this or they are under 65 then Savings Credit will not kick in.

There is a maximum amount of savings credit that is paid and this is goes down, the higher the qualifying income the less Savings Credit is paid. This is all worked out automatically when working out somebody's entitlement, it is not a seperate benefit that has to be claimed.

So if the only income was £100 state Pension and £6,000 capital then he does not have enough qualifing income for savings credit to start. If his State Pension was £130 and £6,000 capital, then he has met the minimum amount (by his State Pension) and would get a small amount of Savings Credit.