Women's pension backpayment

tiffy38

My mother in law has just received her settlement of arrears on the latest  women's pension miscalculation issue, my concern is that this may well affect her capital  savings value and push her above the 23k limit and thus result in a change in elibility to free care costs. Surely this lump sum payment cannot be used in the calculations as it is a build up of a miscalculations going back some 13 years.
I cannot find any information if this DWP back payment of arrears is to be included when social services do a financial assessment. Can anyone advise as this will also affect thousands of people on pension credit as well.

[Deleted User]

Is she in care?

calcotti

tiffy38 said: I cannot find any information if this DWP back payment of arrears is to be included when social services do a financial assessment. Can anyone advise as this will also affect thousands of people on pension credit as well.

For Pension Credit lump sums arising from pension deferral are disregarded indefinitely. Possibly these payments will similarly be disregarded.
Failing this there is normally a one year disregard for payment of benefit arrears unless they are over £5,000 in which case the disregard is until the end of the Pension Credit award (for some other reason). However SP is not listed as one of the benefits to which this rule applies.
So unfortunately I can't give a definite answer.

I can't find anything on means testing for care (don't know where to look).

If you do find out the answer please let us know.

calcotti

Just seen this article
https://www.thisismoney.co.uk/money/pensions/article-9419063/My-mum-underpaid-state-pension-years-penalised-council.html
Not encouraging.