We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Deferred State Pension Lump Sum treated as capital?

ennnceee
ennnceee Posts: 31 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Benefits & tax credits
That's it, really. A friend of ours recently applied for Help with Health Costs, having received a few months before a DSPLS. The application was rejected on the grounds that it was/is over £16,000 and that it's treated as capital. Seems unfair to me, isn't income, per se, is state pension to last for rest of life. 
Filiss

Comments

  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    No it’s not income but it is capital and will be taken into account as such.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • molerat
    molerat Posts: 36,046 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If he wanted it as income he should have taken it as increased pension and not a lump sum.  If it is in his bank account it is capital.
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ennnceee said:
    That's it, really. A friend of ours recently applied for Help with Health Costs, having received a few months before a DSPLS. 
    What is DSPLS?
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • tomtom256
    tomtom256 Posts: 2,256 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    calcotti said:
    What is DSPLS?
    Deferred State Pension Lump Sum
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 28 September 2020 at 10:12AM
    tomtom256 said:
    calcotti said:
    What is DSPLS?
    Deferred State Pension Lump Sum
    Thanks - I should have got that from the thread title!
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 28 September 2020 at 10:16AM
    ennnceee said:
    That's it, really. A friend of ours recently applied for Help with Health Costs, having received a few months before a DSPLS. The application was rejected on the grounds that it was/is over £16,000 and that it's treated as capital. Seems unfair to me, isn't income, per se, is state pension to last for rest of life. 
    If they are on a low income have they checked entitlement to Pension Credit?
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • ennnceee
    ennnceee Posts: 31 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Yes, Calcotti. Thanks all, fair enough, it is capital, then.
    Filiss
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.7K Banking & Borrowing
  • 254.5K Reduce Debt & Boost Income
  • 455.6K Spending & Discounts
  • 247.6K Work, Benefits & Business
  • 604.5K Mortgages, Homes & Bills
  • 178.6K Life & Family
  • 262.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture