Pension Credit

Bossyboots

I have ended up having to check the finances of an elderly relative aged (88).  I am completely bamboozled by the paperwork I have found and more than a little upset.  I have found her pension credit award for Feb 2020 which shows she has Pension Credit Guarantee and an Assessed Income Period I do not know how long for).  I have also uncovered that she has a large sum of money in her current account.  As far as I can see, she is getting rent and council tax reductions on the basis of the pension credit. I had just created and started filling in a spreadsheet to try to work out what I thought would be various underpayments but just want to check things out:-

1. Although she has the Pension Credit Guarantee, would her savings (well over the threshold) mean she should not in any event be getting council tax reduction.

2. Likewise the housing benefit. 

It appears she is paying in full for her carers so that at least is one thing out of the way.  Her care needs have just increased and her saving will fall below the £23,500 with incredible speed now.  Should the debts (if any) to the council to repay reductions/benefits be paid first?  I am not sure I have the time right now to sort this out as I have other caring responsibilites but will do what I can.  Her social worker had been dealing with all these but I can see now from the care plans I have found that for at least the last three years this have been completed with simply the basics and not even geared to her needs.

I would be grateful for any help you can give.  I have only the one pension credit letter so far.  I have a huge box and carrier bag still to wade through just to find DWP/local authority correspondence.

Alice_Holt

Pension Credit will passport her to automatic HB and CT support.
https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/pension-credit/

There is no savings threshold for PC.
https://www.entitledto.co.uk/help/savings-over-60

As she has an Assessed Income Period, capital changes do not usually impact until the AIP ends.  
https://www.nidirect.gov.uk/articles/pension-credit-and-assessed-income-periods#:~:text=An Assessed Income Period (AIP,you if you have one.
https://www.entitledto.co.uk/help/assessed-income-period
When does the AIP end, or is it open-ended as she is over 75?  - this is an important question.

How much is " a large sum of money in her current account" -  obviously more than £23,500.

Bossyboots

Thank you so much for the info and links. 

I haven't seen anything confirming the AIP date, but it looks like she had an assessment in 2015.  There is a request for information and the notes but not the actual form that would have needed to be completed  I have got to the point where all I can do is separate out the paperwork into groups and then plough through it to get concrete details. 

Currently she has £44,000 in her main account.  I think there are two other accounts but one I can't find any details and the other may have £1000 ish but I am not sure if that is still open.  I have not yet unravelled the details of where the money accumulated and how she has so much and how long she has had it for.

Pollycat

Bossyboots said:

Thank you so much for the info and links. 

I haven't seen anything confirming the AIP date, but it looks like she had an assessment in 2015.  There is a request for information and the notes but not the actual form that would have needed to be completed  I have got to the point where all I can do is separate out the paperwork into groups and then plough through it to get concrete details. 

Currently she has £44,000 in her main account.  I think there are two other accounts but one I can't find any details and the other may have £1000 ish but I am not sure if that is still open.  I have not yet unravelled the details of where the money accumulated and how she has so much and how long she has had it for.

Alice has asked a very important question:

Alice_Holt said:

When does the AIP end, or is it open-ended as she is over 75?  - this is an important question.

Bossyboots

Pollycat.  I haven't been able to establish this yet.  The letter from February this year only says there is an AIP.  It does not say indefinite on that letter.  I am trying to find all the DWP letters to try to put together a timeline but the task feels mammoth.  One thing I did see is a letter adjusting her pension credit when her private pension increased.  I can't put my hands on that right now to check the date as I have scooped it up en masse.  I have had to divvy up the paperwork just to get envelopes opened so I can try to sort this out. I do appreciate the help and will come back when I find anything else that might help.  I don't have concerns over her entitlement to pension credit in terms of income, I think that is okay as my daughter did a quick calculation for me.  My concern is that it doesn't seem right that she can have so much in savings but still be entitled to CTB and HB. 

calcotti

Bossyboots said:

 I don't have concerns over her entitlement to pension credit in terms of income, I think that is okay as my daughter did a quick calculation for me.  My concern is that it doesn't seem right that she can have so much in savings but still be entitled to CTB and HB. 

As Alice explained In the first reply, if there is any entitlement to guarantee Pension Credit this automatically grants entitlement to full CTB and HB regardless of savings.

However, if AIP did not apply, savings would decrease Pension Credit entitlement by £1 for every £500, or part thereof, over £10,000. If this resulted in no guarantee Pension Credit payable then the savings would exclude her from CTB and HB.

I think if the February 2020 award letter says an AIP is included, and given her age, then it must be an open ended AIP https://www.entitledto.co.uk/help/assessed-income-period

if she is capable of authorising you to speak on her behalf the simplest way to confirm this would be to ring Pension Credit.

Alice_Holt

Bossyboots said:

  I don't have concerns over her entitlement to pension credit in terms of income, I think that is okay as my daughter did a quick calculation for me.  My concern is that it doesn't seem right that she can have so much in savings but still be entitled to CTB and HB. 

        If she has an entitlement to Guarantee Pension Credit, then she will have an automatic passported entitlement to HB and CT support. You don't need to be concerned about that. Please carefully read the links I posted previously.

Here is another link:
"If you get Guarantee Pension Credit you will automatically qualify for maximum Housing Benefit, but you have to make a separate claim. The £16,000 capital limit for Housing Benefit will not apply if you are getting Guarantee Pension Credit (with or without Savings Credit)"
https://www.turn2us.org.uk/Benefit-guides/Pension-Credit/How-much-Pension-Credit-will-I-get

      The question that might arise is when her AIP ends, will the tariff income on her savings mean that she is now longer entitled to PC.  Given that her savings are shrinking due to payment for carers, then this may well not be case.  
     Here is some information on the impact on savings on PC:
      "There is no upper capital limit for Pension Credit but you may receive a reduced amount if you have more than £10,000 of capital.

For every £500 or part of £500 of capital over £10,000, you’ll be treated as having an income of £1 a week. This is added to any other income you have, such as a pension."

    Here are PC calculators:
https://www.gov.uk/pension-credit-calculator
https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/benefits-calculator/


This is a much more important concern I think you should be addressing -  does she receive a disability benefit such as AA or DLA? 
If she is not receiving these benefits, then apply for Attendance Allowance
https://www.gov.uk/attendance-allowance/how-to-claim
https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/attendance-allowance/

https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/attendance-allowance/claiming-attendance-allowance/how-to-claim-attendance-allowance/

AA will also have the effect of increasing the threshold for PC (her applicable amount), so increasing the likelihood that she would retain PC when the AIP ends.
"If you’re awarded Attendance Allowance, you may become entitled to other benefits, such as Pension Credit, or an increase in these benefits if you’re already receiving them."

https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/attendance-allowance/claiming-attendance-allowance/extra-benefits-and-help-you-can-get/
https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/attendance-allowance/


Please do read the links I have provided as the question you are asking seems to indicative that you haven't and are concerning yourself with irrelevant matters.

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

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs34_attendance_allowance_fcs.pdf


EDIT:   Cross posted with calcotti's post above.

Bossyboots

Thank you all so much.  I think I have got it now.  I knew nothing about Pension Credit so got in a tizzy.  I really appreciate you all taking the time to reply.  Thank you for your mention of the Attendance Allowance which she has been receiving at the full rate for some time. 

calcotti

Bossyboots said: I knew nothing about Pension Credit so got in a tizzy.  

Quite right to be cautious and want to go through it carefully. If you can’t find any letters confirming the AIP I think ringing Pension Credit to check would be sensible, but she will need to be able to authorise you to speak on her behalf.