Proving total capital for the Pension Service

slowcars

Over the past few weeks, I am having to show that our capital has never exceeded £10,000.
First of all I am informed that income paid say weekly has to be spent by the end of the following week. Fortnightly payments have to be spent by the end of the next two weeks. Monthly by the end of the next month and so forth.
We keep the maximum savings down to £10,000 so as to avoid being penalised.
All of our bills etc are paid by DD monthly on the same day each month generally between the 19th and 21st with a big one coming out on the 1st of the month
It's almost impossible to not build up income to pay the monthly DD's on how we should spend our income.
Is there some magic formulae on how we should do this? Should we draw out the money not spent by the end of the relevant period and put it in a box under the bed? Then when a DD comes up for payment pay in some of the cash to cover it?

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MikeJXE

How ridiculous. If you can't have more than 10.000 then take some out and tell them you had to buy a car, washing machine, fridge freezer or something

slowcars

MikeJXE said:

How ridiculous. If you can't have more than 10.000 then take some out and tell them you had to buy a car, washing machine, fridge freezer or something

But then would you not have to prove where the money went? We don't want a new car or any white goods, furniture etc. I have done all of that with the cost-of-living payments (£650, £150, £150). They had to be spent otherwise they would have been treated as capital. Now waiting for the £500 winter fuel money goodness knows what we can spend that on.

sandsy

You might get more responses if you post on the Benefits board.

Grumpy_chap

slowcars said:

Over the past few weeks, I am having to show that our capital has never exceeded £10,000.
First of all I am informed that income paid say weekly has to be spent by the end of the following week. Fortnightly payments have to be spent by the end of the next two weeks. Monthly by the end of the next month and so forth.
We keep the maximum savings down to £10,000 so as to avoid being penalised.
All of our bills etc are paid by DD monthly on the same day each month generally between the 19th and 21st with a big one coming out on the 1st of the month
It's almost impossible to not build up income to pay the monthly DD's on how we should spend our income.
Is there some magic formulae on how we should do this? Should we draw out the money not spent by the end of the relevant period and put it in a box under the bed? Then when a DD comes up for payment pay in some of the cash to cover it?

I am not sure that I understand the context of your question but, in most cases where it is necessary to declare total capital, cash under the bed would also have to be declared as capital.

If you are paid weekly, are you able to spread your DDs so they are more even through the month rather than all in the 2 or 3 days close together?

Bimbly

slowcars said:

Now waiting for the £500 winter fuel money goodness knows what we can spend that on.

Pay it into your energy supplier's account to build up credit for the winter.

But, yes, I agree with above that the experts on benefits are to be found on the benefits board.

squirrelpie

As Sandsy noted, this sounds more like a benefits question than a pension one.

But the answer seems very simple. If monthly DDs need to be paid, but you're paid weekly and have to spend all the pay, then pay the DD out of savings. Then each week add a little back into savings so there's enough there to pay next month's bill.

xylophone

https://forums.moneysavingexpert.com/discussion/6402683/confused-and-worried-over-what-the-increases-will-be-in-april

 get £38 a week Guaranteed Pension Credit and another £16 of Savings Pension Credit. Both of us are pensioners and between us we get approx. £320 a week in State Pensions. On top of that I receive Industrial Injury benefit of approx. £70 a week. Also, I receive my Civil Service pension of approx. £240 a month.

Assuming that there is no increase in Pension Credit allowances or other benefits and just the 10% on the State Pensions with an automatic 10% on the Civil Service pension the increases will amount to £320 + £60 x 10% = £38 increase.
Effectively these increases will wipe out my Guaranteed Pension Credit and without that the Savings Credit will go as well.
If that happens, we will no longer be entitled to any further COL payments as well as the automatic 100% Council Tax Support.

See https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/large-print-factsheets/fs48-lp-pension-credit.pdf

Savings Credit is worked out by looking at the level of retirement provision you have made. It can be paid as well as Guarantee Credit or on its own. There is a limit to how much Savings Credit you can receive each week – up to £14.48 for single people and £16.20 for couples.

It might be as well to read through the fact sheet above to check that you still qualify for GPC?

Re benefits next year

https://www.gov.uk/government/publications/autumn-statement-2022-cost-of-living-support-factsheet/cost-of-living-support-factsheet#:~:text=The Government will also protect,CPI inflation, in April 2023.