Advice required re. Pension Credits Change of Circumstance

calcotti

Colin_Maybe wrote: »

As an adjunct to this question, we were discussing this last night. My wife is older than myself and now on state pension, we claim a small pension credit as top up. If we had a large cash injection and informed them I understand that until the end of the AIP (no idea if we actually have one or when it's up too, I'm at work so can't check right now) no change would take place.

But what happens once the AIP end date kicks in? Are we removed from PC entirely in which case we couldn't apply again until I can claim SP or do we carry on claiming it while actually getting paid zero due to savings?

The first thing to check is whether your wife's award has an AIP. You need to look at the award letter or ring Pension Credit to find out. If you wife reached pension age after April 2016 she will not have an AIP. More information on AIPs here https://www.entitledto.co.uk/help/assessed-income-period

There is no savings limit for Pension Credit but for any savings over £10,000 the Pension Credit award is reduced by £1 for every £250 (or part thereof).

If there is an AIP when it ends you simply have to tell DWP about your current income and savings and the award will be recalculated. If there is no entitlement the award ends (there is no ongoing claim will a nil payment).

If your circumstances change such that the Pension Credit award ends, even if circumstances then change again, it will not be possible for your wife to reclaim it while you are below pension age because of the changes to the rules for 'mixed age' couples taking place in May.

[Deleted User]

calcotti wrote: »

The first thing to check is whether your wife's award has an AIP. You need to look at the award letter or ring Pension Credit to find out. If you wife reached pension age after April 2016 she will not have an AIP. More information on AIPs here https://www.entitledto.co.uk/help/assessed-income-period

There is no savings limit for Pension Credit but for any savings over £10,000 the Pension Credit award is reduced by £1 for every £250 (or part thereof).

If there is an AIP when it ends you simply have to tell DWP about your current income and savings and the award will be recalculated. If there is no entitlement the award ends (there is no ongoing claim will a nil payment).

If your circumstances change such that the Pension Credit award ends, even if circumstances then change again, it will not be possible for your wife to reclaim it while you are below pension age because of the changes to the rules for 'mixed age' couples taking place in May.

She was claiming PC before April 2016 so I'll have to check our paperwork for an AIP date later (or even if we have one).

So (purely theoretically sadly) if we didn't have an AIP date and we received £250,000 say, if we spent it all on a house we couldn't go back to PC until I was claiming SP myself?

What if we did have an AIP date and we spent all of it on a house before the date was up? I presume they would just recalculate the PC from the date we spent everything?

Thanks for the help BTW.

Pollycat

Colin_Maybe wrote: »

As an adjunct to this question, we were discussing this last night. My wife is older than myself and now on state pension, we claim a small pension credit as top up. If we had a large cash injection and informed them I understand that until the end of the AIP (no idea if we actually have one or when it's up too, I'm at work so can't check right now) no change would take place.

But what happens once the AIP end date kicks in? Are we removed from PC entirely in which case we couldn't apply again until I can claim SP or do we carry on claiming it while actually getting paid zero due to savings?

Just to point out that currently if a couple's income is more than £248.80 per week it puts you over the limit to claim PC so depending on how much your SP is, you might not be eligible.
Better to check and know in advance rather than counting on being able to claim PC when you've reached SP age.

calcotti

Pollycat wrote: »

Just to point out that currently if a couple's income is more than £248.80 per week it puts you over the limit to claim PC

£255.25 from Monday next week.

[Deleted User]

Pollycat wrote: »

Just to point out that currently if a couple's income is more than £248.80 per week it puts you over the limit to claim PC so depending on how much your SP is, you might not be eligible.
Better to check and know in advance rather than counting on being able to claim PC when you've reached SP age.

We do claim PC now but it's going to be a few years before I can claim SP anyway, no doubt they'll move the goalposts again (a few times) before then.

Pollycat

calcotti wrote: »

£255.25 from Monday next week.

GOV.UK haven't updated their website yet (and I did say 'currently').

calcotti

Pollycat wrote: »

GOV.UK haven't updated their website yet (and I did say 'currently').

Not a criticism - only posted for information purposes. Hopefully gov.uk will be updated over the weekend ready for when new rates apply from Monday.

xylophone

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

Above already updated.

NB The £255.25 (couple) is the standard minimum guarantee - see above for details.

calcotti

xylophone wrote: »

The £255.25 (couple) is the standard minimum guarantee - see above for details.

Good point - additions may apply depending on circumstances. (it's difficult covering everything in a post isn't it!)

xylophone

(it's difficult covering everything in a post isn't it!)

Yes, you're right - hence link to Age UK fact sheet which is updated and very detailed.