Deferred State Pension Lump Sum treated as capital? 28 September 2020 at 5:49AM in Benefits & tax credits 7 replies 231 views

ennnceee

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. 

calcotti

No it’s not income but it is capital and will be taken into account as such.

molerat

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

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?

tomtom256

calcotti said:

What is DSPLS?

Deferred State Pension Lump Sum

calcotti

tomtom256 said:

calcotti said:

What is DSPLS?

Deferred State Pension Lump Sum

Thanks - I should have got that from the thread title!

calcotti

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?

ennnceee

Yes, Calcotti. Thanks all, fair enough, it is capital, then.