Housing Benefit refused because of Personal Pension

melb01

Hi,

We have been refused HB because I have £12000 in a Personal Pension plan. I am 68 and probably should take an annuity, but this would result in an income of less than £700pa. If I took the Personal Pension now in cash, using the post April 2015 freedoms, then it would be subject to fees and income tax. So, I really want to keep this small sum back for a rainy day.

I did submit a HB claim with a notional income of £700pa but this was disregarded by the council and £12000 capital was used instead.

Apart from this "capital", we qualify for HB.

I have read the Housing Benefits Regs 2006, - PART 6 SECTION 5 Regulation 42 ( Notional Income ) and seen several websites, and am totally confused.

Has anyone got a claim through using Notional Income please?

Mel

nannytone_2

if you have access to this money, then it will be counted as capital.
you have 2 choices. either take the full amount or the annuity.
this is your 'rainy day' money and it is raining~

pmlindyloo

Certainly from the latest circular that I can find the notional income should be used

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/424144/a7-2015.pdf

Hopefully HousingBenefitOfficer may be able to shed some light on this. Possibly some other circular that has been issued.

In the event that HBO doesn't see this then I suggest you telephone them and ask under what legislation they are using the notional capital rather than the notional income.

melb01

pmlindyloo wrote: »

Certainly from the latest circular that I can find the notional income should be used

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/424144/a7-2015.pdf

Hopefully HousingBenefitOfficer may be able to shed some light on this. Possibly some other circular that has been issued.

In the event that HBO doesn't see this then I suggest you telephone them and ask under what legislation they are using the notional capital rather than the notional income.

Many thanks for reply. I will contact them, get the legislation reference and post result here.

Mel

dippy3103

As far as I am aware it would be treated as income available on application..

Do you recive any other benefits?

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/417473/pension-flexibilities-dwp-benefits.pdf

tomtom256

melb01 wrote: »

Hi,

We have been refused HB because I have £12000 in a Personal Pension plan. I am 68 and probably should take an annuity, but this would result in an income of less than £700pa. If I took the Personal Pension now in cash, using the post April 2015 freedoms, then it would be subject to fees and income tax. So, I really want to keep this small sum back for a rainy day.

I did submit a HB claim with a notional income of £700pa but this was disregarded by the council and £12000 capital was used instead.

Apart from this "capital", we qualify for HB.

I have read the Housing Benefits Regs 2006, - PART 6 SECTION 5 Regulation 42 ( Notional Income ) and seen several websites, and am totally confused.

Has anyone got a claim through using Notional Income please?

Mel

You wouldn't have been refused just on having £12k in capital as £16k is the cutoff.

Do you have other savings that have been added to the capital to take you over £16K ?

Presumably you are classed as a pensioner so your lower capital limit should be £10k. So if £12k is the only capital you hold you won't have much of a tarrif income.

It's hard to advise with out all of the facts.

melb01

tomtom256 wrote: »

You wouldn't have been refused just on having £12k in capital as £16k is the cutoff.

Do you have other savings that have been added to the capital to take you over £16K ?

Presumably you are classed as a pensioner so your lower capital limit should be £10k. So if £12k is the only capital you hold you won't have much of a tarrif income.

It's hard to advise with out all of the facts.

Yes, I have some cash that takes me over the £16,000, but, without the £12,000 SIPP being counted as "capital" I qualify for HB.

I've now appealed against the decision based on the information posted by pmlindyloo ( Many thanks again ), and I'm awaiting a reply.

Mel

Housing_Benefit_Officer

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/236963/hbgm-bp2-assessment-of-income.pdf

Possibly P2.682 onwards.

You will need to ask under exactly what rules they are treating your private pension as capital rather than income. Ask them for the specific legislation in their guidance manual.

When you completed your claim form did you declare the value of your pension fund as capital?

What exactly is the capital invested in?

melb01

Good News

After two appeals HB has been awarded.

So, many thanks to all contributors to this thread especially pmlindyloo and xylophone.

Best wishes

Mel

POPPYOSCAR

nannytone wrote: »

if you have access to this money, then it will be counted as capital.
you have 2 choices. either take the full amount or the annuity.
this is your 'rainy day' money and it is raining~

A Pension is not rainy day money, it is income in retirement.


Glad you got it sorted out OP.