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Pension Credit and impact of savings amount change

Dear forum members,

My parents currently receive pension credit. When I helped them to apply for it three years ago we used the amount of savings they had at that time. Obviously this has changed over time and the savings amount increases every month. As pension credit is mean-tested, do we need to inform DWP every time savings amount changes (which means every month) or do we inform once a year? Not exactly sure and apology if this question is already asked.

Thanks,

Ahmed

«1

Comments

  • You only need to inform DWP if their savings total £10,000 or more.

    How much is their capital?
    "All shall be well, and all shall be well, and all manner of thing shall be well."  :) 
  • calcotti
    calcotti Posts: 15,696 Forumite
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    Once the savings go over £10,000 need to be informed. After that if the savings go over £10,500 they need to be told again and thereafter each time they go over the next £500 threshold.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • ahmjt
    ahmjt Posts: 95 Forumite
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    When they applied for pension credit in 2020 the saving was 10k+ - so we informed DWP about it. Now the saving is 30K+. Based on @calcotti 's info I will need to inform DWP every month. Seems a lot of overhead (as I have to do it)
  • calcotti
    calcotti Posts: 15,696 Forumite
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    edited 27 January 2023 at 6:16PM
    ahmjt said:
    When they applied for pension credit in 2020 the saving was 10k+ - so we informed DWP about it. Now the saving is 30K+. Based on @calcotti 's info I will need to inform DWP every month. Seems a lot of overhead (as I have to do it)
    If you haven't previously told them they are now likely to want complete bank statements since the claim started. They will have to recalculate Pension Credit since the claim started and how much overpayment has occurred.

    £30,400 would result in a deduction of a deduction of £41/week from the PC.

    If this means there has been nil entitlement to PC and they have previously been passport to HB or CTR then HB and CTR will also have been overpaid because these cannot be claimed if capital is over £16,000 unless guarantee Pension Credit is payable.

    How much is their current PC award? If applicable you need to separate out Savings Pension Credit and Guarantee Pension Credit.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • ahmjt
    ahmjt Posts: 95 Forumite
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    Thanks @calcotti for your detailed reply. I will need to find out details from my parents. As they live with us they have almost zero spending except occasional holiday trips (hence getting more than 500 each month). I think my dad's SP is 260/month, my mom's SP is 129/month. Their PC was 118/week which was recently raised to 140/week. They have not applied for HB or CRT. I need to get the breakdown for guarantee PC and saving PC. I have to write up to DWP asap with details and let them adjust.
  • calcotti
    calcotti Posts: 15,696 Forumite
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    edited 28 January 2023 at 4:48PM
    ahmjt said:. I need to get the breakdown for guarantee PC and saving PC. 
    You don’t need to worry about that if they are not claiming HB or CTR.

    The SP amounts are very low but are consistent with that level of Pension Credit (If the savings are not being taken into account).

    I infer they do not receive any disability benefits.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • ahmjt
    ahmjt Posts: 95 Forumite
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    edited 28 January 2023 at 4:37PM
    They have not applied for any other benefit. I don't know if they are entitled to any but that is another story. My dad has his work pension which I think increased from 225 to 235 per month in the last 2-3 years.
  • calcotti
    calcotti Posts: 15,696 Forumite
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    If it’s got that much work pension as well as the State Pensions amounts you mentioned then the Pension Credit amount doesn’t look right (regardless of the savings) unless they are also getting disability benefits which might increase the PC entitlement. If you are able to I suggest you go through their bank account statements to establish exactly what they are receiving.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • xylophone
    xylophone Posts: 45,426 Forumite
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    If it’s got that much work pension as well as the State Pensions amounts you mentioned 

    The OP gives monthly amounts for his parents' SPs - presumably he means four weekly?


    On that basis, their joint SPs would be a very low £97.50 a week.

    If they had no savings and no savings interest /other income at all (  and no CT or housing costs and no entitlement to disability benefits), presumably they would be entitled to  approx £181 a week in CT?

    However, it appears that on top of SP, they receive approx £54 a week in private pension.

    This would give an income of approx £151 a week so that they would be entitled to around £127 a week?


    But they also have savings of £30,400 which gives a notional income of £41 a week?


    This reduces PC to around £86 a week?


    If so a recalculation will be required?

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