Pension Credit eligibility

BarleyGB

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 

Alice_Holt

There isn't a £16k PC threshold.
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.

calcotti

Money from Equity release is capital while she had it.

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?

bigbill

She maybe has or had a assessed income period that has now ended and PC now need to check her savings income etc from the AIP end date?

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

BarleyGB

calcotti said:

Money from Equity release is capital while she had it.

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?

A key question for me is, the monies I lent, in my view, although they increase her apparent bank balance they are 'owed' and surely shouldnt form part of the 'income' calculation?

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.

calcotti

BarleyGB said:..A key question for me is, the monies I lent, in my view, although they increase her apparent bank balance they are 'owed' and surely shouldnt form part of the 'income' calculation?

Without a loan agreement you can't prove that they are a loan rather than a gift. In any case a loan agreement just gives rise to a debt and debts owed do not form part of a calculation of capital. Whether or not it is a loan only matters when assessing whether or not any payment by her to you should be treated as deprivation of capital.

BarleyGB said: I think the Pension Credit (her only other means of income beyond state pension) is £26.50 per week, but now suspended.

That means that means that currently PC only reduces to nil if capital is over £23,000. 

Alice_Holt

As an aside -
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. 

sheramber

BarleyGB said:

calcotti said:

Money from Equity release is capital while she had it.

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?

A key question for me is, the monies I lent, in my view, although they increase her apparent bank balance they are 'owed' and surely shouldnt form part of the 'income' calculation?

What are the repayment arrangements?

Why are you lending sums of money for her to hold it in her bank account?