Pension Credit eligibility
BarleyGB
Forumite 232 Posts
Could any of you provide clarification/advice re Pension Credit eligibilty
An elderly, infirm but close and trusted relative has been in receipt of Pension Credit since 2008. They were eligible when they applied.
The person and I are flexible with money between each other, such that ive supported her by paying multiple thousands to her bank account over the last 10 years (possibly around £15000 in total). Ive also paid her car insurance, shopping, and various other one off purchases. The main reason for my assistance is to provide reassurance for a anxious widower, to relieve her of money worries.
Unbeknown to me this has meant her Savings now exceed £16000, the DwP are now asking her for historical bank account/savings information:
Questions:
1) The transactions I made were genuine and could be considered a loan, they would likely have pushed her balance over the £16000 threshold around 2016/2017
2) How do the DwP consider Equity Release, the relevative received £30000 in 2002, though much of this was spent on house alterations (e.g. new Windows), would DwP offset the money released against current savings?
3) How far back will DwP require information, ive spoken to one of her banks and they say they can only provide 6 years statements
4) What advice would any of you give in terms of clarifying the position with DwP, are any of the above mitigations vs the the £16000 Pension Credit threshold?
Thank you
An elderly, infirm but close and trusted relative has been in receipt of Pension Credit since 2008. They were eligible when they applied.
The person and I are flexible with money between each other, such that ive supported her by paying multiple thousands to her bank account over the last 10 years (possibly around £15000 in total). Ive also paid her car insurance, shopping, and various other one off purchases. The main reason for my assistance is to provide reassurance for a anxious widower, to relieve her of money worries.
Unbeknown to me this has meant her Savings now exceed £16000, the DwP are now asking her for historical bank account/savings information:
Questions:
1) The transactions I made were genuine and could be considered a loan, they would likely have pushed her balance over the £16000 threshold around 2016/2017
2) How do the DwP consider Equity Release, the relevative received £30000 in 2002, though much of this was spent on house alterations (e.g. new Windows), would DwP offset the money released against current savings?
3) How far back will DwP require information, ive spoken to one of her banks and they say they can only provide 6 years statements
4) What advice would any of you give in terms of clarifying the position with DwP, are any of the above mitigations vs the the £16000 Pension Credit threshold?
Thank you
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Replies
But a tariff income is applied for all savings over £10k.
Google the Age UK PC factsheets for more info.
She needs to supply the info DWP are seeking as best as she is able.
The AgeUK factsheet Alice refers to is here
https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf
She needs to provide the information requested. An explanatory narrative about how money was used may be helpful.
DWP should have been advised when her capital went over £10.000.
DWP will then have to calculate how much income she is treated as having received from her capital on a weekly basis and her PC entitlement will then have to recalculated week by week. She will then have to repay the PC calculated as overpaid.
How much PC is she receiving?
During any AIP there is no need to report any changes to income / capital most fixed ones ended early around 2019/20 but some were indefinite and are still in place for many over 75,s
I think the Pension Credit (her only other means of income beyond state pension) is £26.50 per week, but now suspended.
Im going to help her provide DWP with all possible information.
Recognise that she should have informed DWP of change of circumstances, though not the forefront when youre 80+ and forgetful (no excuse I know).
I'll review the AgeUK link, thank you.
That means that means that currently PC only reduces to nil if capital is over £23,000.
Would she qualify for Attendance Allowance (if not already getting it) - again Age UK have good info on this benefit.
If so, this would increase her PC eligibility.
As her PC has been suspended, then she (you) need to look at potential eligibility to Council Tax reduction (and if she rents to HB) from the local council, and apply when her savings fall to the requisite level.
Why are you lending sums of money for her to hold it in her bank account?