Housing Benefit and claiming my state pension

pentsioner

I was working when I turned state pension age. When I lost my job, I claimed HB and did not claim my state pension as I thought I would easily find work, but with the pandemic, I did not.

 

I have now be offered a job starting in April and will be able to pay my own rent again once I am paid

.

However-

 

I thought with the new state pension rules, that I would not be able to claim any deferred state pension age years back, but pension services have written to me and stated that “you can back date your claim up to 12 months and receive taxable arrears.”

 

1.If I claim back this 1 year state pension now while on Housing Benefit, would I have to pay back the past years Housing Benefit? And if I do have to pay it back…

 

2. If I claim back this 1 year after I start work, would I have to pay back the Housing Benefit I have been receiving during that 12 months?

 

Dazed_and_C0nfused

pentsioner said:

I was working when I turned state pension age. When I lost my job, I claimed HB and did not claim my state pension as I thought I would easily find work, but with the pandemic, I did not.

 

I have now be offered a job starting in April and will be able to pay my own rent again once I am paid

.

However-

 

I thought with the new state pension rules, that I would not be able to claim any deferred state pension age years back, but pension services have written to me and stated that “you can back date your claim up to 12 months and receive taxable arrears.”

 

1.If I claim back this 1 year state pension now while on Housing Benefit, would I have to pay back the past years Housing Benefit? And if I do have to pay it back…

 

2. If I claim back this 1 year after I start work, would I have to pay back the Housing Benefit I have been receiving during that 12 months?

 

You don't have to backdate your claim, you could just have a higher amount (higher than if you backdated your claim) from when you claim it going forward.

pentsioner

That shoud be "Housing Benefit" in the title. I can't find the edit to be able to correct that

pentsioner

Dazed_and_C0nfused said:

pentsioner said:

I was working when I turned state pension age. When I lost my job, I claimed HB and did not claim my state pension as I thought I would easily find work, but with the pandemic, I did not.

 

I have now be offered a job starting in April and will be able to pay my own rent again once I am paid

.

However-

 

I thought with the new state pension rules, that I would not be able to claim any deferred state pension age years back, but pension services have written to me and stated that “you can back date your claim up to 12 months and receive taxable arrears.”

 

1.If I claim back this 1 year state pension now while on Housing Benefit, would I have to pay back the past years Housing Benefit? And if I do have to pay it back…

 

2. If I claim back this 1 year after I start work, would I have to pay back the Housing Benefit I have been receiving during that 12 months?

 

You don't have to backdate your claim, you could just have a higher amount (higher than if you backdated your claim) from when you claim it going forward.

I could do with the money. The job I have been offered is on much lower salary.

It would be good if I could get this before the end of this tax year, to lower the amount of tax I pay.

Dazed_and_C0nfused

What do you mean you could do with the money?

You need the lump sum now or you need the higher State Pension?

Have you had little or no taxable earnings in the current tax year?

pentsioner

I need the money now. I have been out of work in thic current tax year, claiming full housing benefit and living on a tiny private pension of about £55 per week.

calcotti

If you are past State Pension age I think your Housing Benefit should have been calculated as if you were receiving your State Pension even if you were not receiving it. Can you check the HB calculations to see if that is the case?

[EDIT - Above advice was incorrect for which I apologise]

If you are now paid lump sum arrears of SP that will be treated as capital and not income. If your total capital is below £10,000 it has no impact on your HB.

calcotti

Dazed_and_C0nfused said: You don't have to backdate your claim, you could just have a higher amount (higher than if you backdated your claim) from when you claim it going forward.

If OP will still be claiming means tested benefits then it can make more sense to take a lump sum which may have no impact on benefit entitlement whereas a higher regular pension will decrease the means tested entitlement, depends what the claimant wants to prioritise.

pentsioner

calcotti said:

If you are past State Pension age I think your Housing Benefit should have been calculated as if you were receiving your State Pension even if you were not receiving it. Can you check the HB calculations to see if that is the case?

If you are now paid lump sum arrears of SP that will be treated as capital and not income. If your total capital is below £10,000 it has no impact on your HB.

I think it was you who a few years ago told somebody on here that if SP was not being claimed, then for HB it was calulated as if they were not claiming it.

I told HB the council that I was state pension age but not claiming it and they said that SP would not be counted in the calculation

calcotti

pentsioner said:

I think it was you who a few years ago told somebody on here that if SP was not being claimed, then for HB it was calulated as if they were not claiming it. 

If that’s true I’m having a ‘senior moment’ myself. I will see if I can check the HB manual when I’ve got a moment. Anyway, if HB have told you that I expect they are correct.

Your memory is better than mine! My apologies for incorrect advice earlier.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/236963/hbgm-bp2-assessment-of-income.pdf

P2.680 From 4 April 2005, when a person is deferring receipt of their State Retirement Pension the notional income provisions do not apply.

I still believe that lump sum arrears arising from deferment of SP will be treated as capital as per my previous post.

pentsioner

calcotti said:

If you are now paid lump sum arrears of SP that will be treated as capital and not income. If your total capital is below £10,000 it has no impact on your HB.

Thanks. It will take my capital to just below 10k.