State pension or Pension credit

kaos

So currently I have one parent on old state pension. Wife on ESA SG and is not pension age until 2022. They recieve other benefits and so qualify and recieve Severe Disability premium (SDP). I guess what I need to know is: although both will be eligible for a state pension should they claim Pension credit? I'm unsure if they will continue to get SDP if they both continue along the route of claiming separately.

I hope this makes sense.

antrobus

kaos wrote: »

So currently I have one parent on old state pension. Wife on ESA SG and is not pension age until 2022. They recieve other benefits and so qualify and recieve Severe Disability premium (SDP). I guess what I need to know is: although both will be eligible for a state pension should they claim Pension credit? I'm unsure if they will continue to get SDP if they both continue along the route of claiming separately.

I hope this makes sense.

Guarantee Credit tops up your weekly income if it’s below £163 (for single people) or £248.80 (for couples).

https://www.gov.uk/pension-credit

It's on top of the state pension, not an alternative.

Paul_Herring

I'm unsure if they will continue to get SDP if they both continue along the route of claiming separately.

Probably one for the benefits board, but this may be relevant: https://www.gov.uk/disability-premiums-income-support/eligibility

SnowMan

Slightly confused on the scenario/question.

However I think you are saying that the wife is currently claiming income based ESA for the couple, with a severe disability premium at either the single or couple rate.

However you realise that there is an alternative possible claim whereby the husband claims pension credit for the couple. And so the wife's income based ESA claim for the couple terminates.

And you are asking if switching to the pension credit claim route is better and how it affects the severe disability premium?


The rules around whether the severe disability premium applies and whether this is at the single or couple rate are pretty much the same under the ESA or pension credit route.

The total amount of benefit under both routes MAY also be the same because of the pensioner premium that applies under the ESA route (when the non claiming partner is above SPA) that tries to bring benefits up to the pension credit level.

Without knowing the full and detailed circumstances, it's hard to say which is the best route.

If they continue down the ESA route then after 15th May 2019 they won't then be able to claim pension credit until the wife reaches SPA herself in 2022, but if they claim pension credit before then they can stay on pension credit after 15th May.

And if they stay on the income based ESA claim route they may end up getting moved onto universal credit at some point in the future until 2022, although if that happens (and there are arguments to say that those getting the severe disability premium will be the last to be switched) they should get transitional protection when they are switched.

There may be an argument for making the switch to pension credit to keep things simple, but the numbers need to be crunched. There are some subtle differences, for example through the ESA route Council Tax Reduction will be based on the working age scheme of the local authority, whereas under the pension credit route it will be based on the pension age scheme.

And if the wife's ESA is medically reassessed before 2022 this could cause more issues if the pension credit route is not chosen.

So you should contact your local advice agency or CAB and ask them to do a detailed comparison. And you need to ask about this now so you can take any action in advance of the 15th May 2019 date.

Rich2808

Being on pension credit gives you a full rebate on your council tax, free dental care, free/discounted glasses and more.

Its definitely worth claiming!

Pollycat

kaos wrote: »

So currently I have one parent on old state pension. Wife on ESA SG and is not pension age until 2022. They recieve other benefits and so qualify and recieve Severe Disability premium (SDP). I guess what I need to know is: although both will be eligible for a state pension should they claim Pension credit? I'm unsure if they will continue to get SDP if they both continue along the route of claiming separately.

I hope this makes sense.

Be aware of changes to Pension Credit from May 2019 which impacts on 'pensioners with younger partners'.


Thread here:
https://forums.moneysavingexpert.com/discussion/5951059/pensioners-with-younger-partners-wont-be-able-to-claim-pension-credit-under-new-rules-mse-news

kaos

Thanks for the quick response.

You are right SnowMan I am looking at an alternative possible claim before the 15th May. I have been told by DWP today mum will continue on ESA until her state pension. Hense the question will she get the SDP if she continues along this route or would she best to jump on dad's claim and claim Pension Credit.

State pension for father is 163.19. I have been told they will recieve£248 on PC. And still maintain SDP payments. I will be seeking advise on Monday but you have helped with your explanation.

I personally feel they should move to PC but this will be a big change and with combined illness hard for them to understand.

Thanks again

Pollycat

kaos wrote: »

Thanks for the quick response.

You are right SnowMan I am looking at an alternative possible claim before the 15th May. I have been told by DWP today mum will continue on ESA until her state pension. Hense the question will she get the SDP if she continues along this route or would she best to jump on dad's claim and claim Pension Credit.

State pension for father is 163.19. I have been told they will recieve£248 on PC. And still maintain SDP payments. I will be seeking advise on Monday but you have helped with your explanation.

I personally feel they should move to PC but this will be a big change and with combined illness hard for them to understand.

Thanks again

I think the advice below is excellent and I think you should get your parents to do this, with you in tow to ask questions if at all possible.

I believe some Age UK offices have an advisory service.

SnowMan wrote: »

So you should contact your local advice agency or CAB and ask them to do a detailed comparison. And you need to ask about this now so you can take any action in advance of the 15th May 2019 date.

SnowMan

kaos wrote: »

I have been told by DWP today mum will continue on ESA until her state pension. Hence the question will she get the SDP if she continues along this route or would she best to jump on dad's claim and claim Pension Credit.

.........I will be seeking advise on Monday but you have helped with your explanation.

Definitely seeking advice is the way to go, and you going along with your parents will definitely help.

Make sure you take along details of your parents income, for example award notices, for example for the ESA, PIP/DLA and state pension as the advice agency will need to work out what mobility/care rates, premiums they are getting etc.

Your mum's ESA may be contribution based ESA (£110pw including the support group component) topped up by income based ESA, although award letters don't always break it down clearly. So worth saying if they go the pension credit route then the contribution based ESA will continue to 2022 (and it will count as income in the pension credit calculation), but the income based ESA top up to that will then stop.