Pension credit - temporary increase in income following death of spouse

Rich2808

Sadly my father passed away recently in a nursing home.

Since he moved into the home my mother has been in receipt of pension credit due to her being on a low income.

Following my fathers death she will be entitled to a higher state pension based on his contributions - offset by a reduction in pension credit income I assume - and half of his private pension; as well as continuing to receive attendance allowance. Her inherited savings from my father would still mean she had less than £10k in savings and she would still be entitled to pension credit on her permanent income.

However for the first 3 months she will receive 100% of my father's private pension under the scheme rules; before reverting to the 50% widows pension in month 4 as well as the balance of his private pension for this month which is likely to reduce/end her guaranteed pension credit and reduce her council tax support for 3 months. She will also receive an £800 death benefit payment from his trade union.

What I was wondering is how the pension service treat this temporary additional private pension income/lump sum bereavement payments? Do they have a disregard period for bereavements; and is an allowance allowed against say funeral bills (which I am covering)?

She is not on an AIP as she only started claiming PC last year.

Would welcome any advice on this.

xylophone

and she would still be entitled to pension credit on her permanent income.

Have you checked this out?

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

She should contact DWP and ask.

Alice_Holt

Age UK also have a telephone advice line.

I've just been looking at their factsheet, and there is no mention of such a temporary additional private pension income disregard.
I would think PC is not payable for the period in which her income is above the relevant PC eligible amount.

Good advice to contact the Pensions Service. To be on the safe side I would also keep a record of her income together with Pension Service telephone calls, in case of any subsequent dispute with the DWP.

Rich2808

xylophone wrote: »

Have you checked this out?

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

She should contact DWP and ask.

We have already highlighted the potential issue with DWP - but the first step is for them to recalculate her state pension entitlement based on my father's contribtions as this will increase and reduce her pension credit anyway. My mother won't be getting her first payment from my father's private pension until 30 June.

So there are timing issues. She presumably would not receive PC from end June to end September - and have to be means tested for council tax support (which she would still be entitled to at a reduced rate) and then revert back from 1 October to full CTS/guaranteed PC.

I assumed they would provide some transitional allowance for the death of a spouse - when these extra payments are presumbly intended to cover funeral expenses etc/other costs of the deceased spouse.

Thanks anyway - we will see what DWP come up with! On her current sole pension - even allowing for the extra private pension - she would still get Guaranteed PC. So they need to work out her new state pension first before we can conclude anything in my view!

anmarj

There is no disregard for any temporary increases in income or capital. If it disallows her claim for three months she will have to go through the new claim stages when her income drops.