Delaying claim for state pension

maxmycardagain

A family member reckons she can increase her state pension by carrying on working but not claiming for 2 years, except she claims working tax creits on her part time workings and i doubt HMG/DSS will be that generous

Note "FROM" as if she kept claiming post state pension claim

Higher weekly payments

Taking your extra State Pension as higher weekly payments could reduce the amount you get from:

• Income Support
• Pension Credit
• Universal Credit
• Employment and Support Allowance (income-related)
• Jobseeker’s Allowance (income-related)
• Housing Benefit
• Council Tax Reduction
• tax credits

https://www.gov.uk/deferring-state-pension

calcotti

There are two different points here.
1) if she defers the State Pension while claiming Tax Credits does her future SP entitlement increase? The answer to that question appears to be yes because Tax Credits are not included on the list of benefits that prevent an increased SP entitlement.
2) if she continues to work after claiming SP will the increase reduce her WTC. The answer to that is probably (depending on the actual numbers involved).

If her intention is to work a couple more years while deferring the SP and then stop work (or reduce the hours to below the level at which she would be eligible for WTC) at the time she claims SP then question 2 is not relevant.

maxmycardagain

As her WTC claims run from April to April ive suggested she delay her SP till after the next award then claim it (say in May) and keep working for a year with her wage, her WTC and her SP all running together for 12 months quite legally...i think?

(unless you know different)

calcotti

All perfectly legal. It doesn't really matter when she takes the SP. When she does she’ll need to tell WTC and the WTC will be recalculated for the remainder of the year. Whether she will still have any entitlement to WTC will depend on the numbers. Can always try a benefits calculator to try and get an idea https://www.gov.uk/benefits-calculators

maxmycardagain

She has one factor in her favour in that she works for her son on a self employed basis and can juggle hours/income to suit (legally of course)

https://www.gov.uk/changes-affect-tax-credits

Icequeen1

maxmycardagain said:

She has one factor in her favour in that she works for her son on a self employed basis and can juggle hours/income to suit (legally of course)

https://www.gov.uk/changes-affect-tax-credits

Does she claim any other benefits? Deferring a state pension is ignored for tax credits, but not other benefits where they will still treat you as having any income you are deferring. 
I know your post wasn't about this - but is she really self-employed - i am seeing a lot of issues lately where people are claiming as self-employed as a choice but in fact are employed. If she is working for her son, she should check this status carefully. 

IQ