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My dear old Mum lives in a very nice assisted home, she receives her state pension, pension credits and a small private pension, her rent and council tax are paid for and she pays for her food and a small level of daily care. We need to understand what is the maxium ammount of savings she can have before it effects her benefits. I have seen figures mentioned of between £10000 -£23500 and find the whole thing confusing, can anyone help or advise.
Thanks.

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  • McKneff
    McKneff Posts: 38,833 Forumite
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    I believe it starts at £6,000 when it starts to affect benefits and goes on a sliding scale up to £16,000 when no benefits are stopped although I am not sure it would be all of them.
    Best place to ask would be the DWP to be absolultely sure.


    She cannot give money away though or squander it so as to bring herself under those levels
    This would be Deprivation of Assets.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • pmlindyloo
    pmlindyloo Posts: 13,052 Forumite
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    Lifebiker wrote: »
    My dear old Mum lives in a very nice assisted home, she receives her state pension, pension credits and a small private pension, her rent and council tax are paid for and she pays for her food and a small level of daily care. We need to understand what is the maxium ammount of savings she can have before it effects her benefits. I have seen figures mentioned of between £10000 -£23500 and find the whole thing confusing, can anyone help or advise.
    Thanks.

    Since your mum is on Pension Credit (I am presuming Guarantee Pension Credit) then she is allowed £10000 in savings.

    Any amount over this is counted as income and deducted from her PC at the rate of a £1 for every £500 (or part of) from her PC.

    As long as she is getting some Guarantee PC then she will still be entitled to full HB and CT support according to her personal circumstances.

    The rules for Pension Credit are quite different to other means tested benefits.

    http://www.adviceguide.org.uk/england/benefits_e/benefits_older_people_ew/benefits_for_older_people.htm
  • sleepless_saver
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    You can check out the effect of different levels of savings using the pension credit calculator.

    If she gets guarantee pension credit then the amounts mentioned in Mckneff's post do not apply. If she gets savings pension credit then they would apply.

    She may be in an Assessed Income Period, her most recent pension credit award letter will say - it should also say what kind of pension credit she currently gets. During an AIP it does not matter how much capital she has, but it will matter when she is reassessed.
  • dodger1
    dodger1 Posts: 4,579 Forumite
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    Lifebiker wrote: »
    My dear old Mum lives in a very nice assisted home, she receives her state pension, pension credits and a small private pension, her rent and council tax are paid for and she pays for her food and a small level of daily care. We need to understand what is the maxium ammount of savings she can have before it effects her benefits. I have seen figures mentioned of between £10000 -£23500 and find the whole thing confusing, can anyone help or advise.
    Thanks.

    I believe the £23,500 figure you quoted is with regard to people in a care home.
    It's someone else's fault.
  • nannytone_2
    nannytone_2 Posts: 12,952 Forumite
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    [is she receiving attendance allowance?
    if her care needs are moderate/high then she may be eligible.
    this money would not be counted towards means tested benefit/B]
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