Pension age and Bedroom Tax

roy_harper

Currently 64 years old and under-occupying by 1 bedroom. This affects my Housing Benefit.
.
I share the home with my adult child who has higher rate disability PIP and ESA legacy - I receive carer's allowance and ESA legacy benefit - no savings. NI contributions ok.

I am thinking of how my budget will change when I reach state pension age. I think I would be eligible for Pension Credits, but I'm not sure.

Q. Will I still get Housing Benefit and Bedroom Tax at 67 years? Q2  Will I still get ESA?  Q3 Will I be worse off?

Alice_Holt

First thing might be to get a state pension forecast.

Q1) Yes you can continue to receive HB and CTr post SPA. If in receipt of PC then you have an automatic entitlement to full HB / Council Tax reduction (CTr) . There is no bedroom tax for those past SPA.

Q2)  ESA will stop at SPA.  You cannot get both CA and your SP, instead you may be able to get a carers premium added to PC (If eligible for PC)

Q3) Do you have any occupational / personal pension income payable at SPA ?

If eligible for PC the current rates are:
   Single               £177.10 per week
Carers premium  £37.70
PC will top your income up to this amount, so this is the minimum you will get. 
(Plus full HB and CTr)  

Check on a benefit calculator - https://www.gov.uk/benefits-calculators
To see if you will be better or worse off, generally post SPA benefits are more generous than working age benefits  

roy_harper

Extremely helpful - thank you.
I don't have any other occupational/personal pension.  I moved jobs frequently, so didn't qualify for pension, as not long enough in the jobs.  I was also made to sign a document waiving all rights to ex-husband's pension when I divorced 30 years ago.  

Alice_Holt

roy_harper said:

Extremely helpful - thank you.
I don't have any other occupational/personal pension.  I moved jobs frequently, so didn't qualify for pension, as not long enough in the jobs.  I was also made to sign a document waiving all rights to ex-husband's pension when I divorced 30 years ago.  

      Then it's very likely you will be entitled to those rates of PC to top up your SP.

      Do be aware that it is sensible to apply for your SP and for PC  some months before your actual SP age.

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

roy_harper

Thank you so much.  I just performed the Pension Forecast on the Govt gateway.
It stated 47 years full contributions.
£179.60 per annum
Thank you again.

Alice_Holt

So, with the caring responsibilities (and PC premium) for someone in receipt of a disability benefit, you would be entitled to £35 of PC weekly.  The PC would give automatic entitlement to full HB & CTr.

Without those caring responsibilities your SP is more than the PC. You would still have an entitlement to HB and CTr, but would need to apply to your local council (as you do now) and have that entitlement calculated from your income / circumstances. 

roy_harper

I understand.  Thank you again - most helpful and clear.

wilfred30

roy_harper said:

Thank you so much.  I just performed the Pension Forecast on the Govt gateway.
It stated 47 years full contributions.
£179.60 per annum
Thank you again.

It's per week!  Although, it will be higher than that in 2 years' time.