Accumulating Pension Credit - Capital reassessment?

Sea_Shell

Thanks so much everyone.  I have a clearer understanding now.

One last thing (for now 😉)   Has the savings threshold always been £10k over the last 15 years?

Did it used to be less?  Has it ever been subject to any inflationary increases?

HillStreetBlues

Sea_Shell said:

One last thing (for now 😉)   Has the savings threshold always been £10k over the last 15 years?

Did it used to be less?  Has it ever been subject to any inflationary increases?

It changed from £6,000 to £10,000 on the 2nd November 2009.

whizzywoo

poppy12345 said:

Sea_Shell said:

Are there any specific codes I should look for on bank statements?

Are these likely to be weekly or monthly?

State pension
Pension credit

Disability uplift to PC
DLA or PIP

State Pension (SP) 4 weekly.

Pension credit (PC) 4 weekly.

Disability uplift to pension credit? no such thing because it will be paid in with PC.

DLA/PIP 4 weekly.

It's also possible for both State Pension and Pension Credit to be paid weekly.

Another thing to be aware of is that Pension Credit can be included with the State Pension rather than separately. 

Alice_Holt

Sea_Shell said:

  Has the savings threshold always been £10k over the last 15 years?

     If he has been claiming PC for that period of time, it's worth checking that an assessed income period (AIP) doesn't apply.
   Probably unlikely as AIP's stopped in 2016, but worth checking. His historic PC letters should indicate if an AIP was / is in force.

   Perhaps confirm this with the Pension Service, when he notifies them of his savings amount. I would strongly advise keeping all correspondence / notes of tel calls, etc.

Info on AIP's here:
https://www.gov.uk/government/publications/pension-credit/pension-credit-extra-information#assessed-income-periods-aips

Sea_Shell

Interesting.

Under what circumstances would an AIP with no end date possibly have been granted?

bengal-stripe

Sea_Shell said:

Under what circumstances would an AIP with no end date possibly have been granted?

AIPs needed renewal every 5 years until you had reached the age of 75, then it was granted indefinitely (i.e. until death). When AIPs were abolished, those holding an indefinite award did not lose it, but continue keeping it to their passing.

Only people 82 or older today would still be holding an AIP.

Sea_Shell

Update - plus additional question.  (Sorry for not coming back sooner)

Turns out they are under the £10k limit for their main CA plus their savings account.   About £7k, if you ignore this month's income and COL payments.

However, this doesn't include an injury compensation payment that they received following an accident about 10 years ago that they have effectively ringfenced and don't think of as "spends"    (c.£15k)

They are adamant that they DID ring the benefits people at the time who told them that it would be disregarded because it was compensation.  So they've assumed it will continue to always be thus!

Is this likely to be true?  Is it likely to be an opened ended disregard, time wise?

If they spent (some of) it, could they re-accumulate it again?

Alice_Holt

Sea_Shell said:

However, this doesn't include an injury compensation payment that they received following an accident about 10 years ago that they have effectively ringfenced and don't think of as "spends"    (c.£15k)

They are adamant that they DID ring the benefits people at the time who told them that it would be disregarded because it was compensation.  So they've assumed it will continue to always be thus!

      Very possibly.

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/365783/hbgm-bp1-assessment-of-capital.pdf

  See 1.159  &  1.181

 It would be good if they had confirmation of the disregard decision in writing, but I presume not.

Sea_Shell

Alice_Holt said:

Sea_Shell said:

However, this doesn't include an injury compensation payment that they received following an accident about 10 years ago that they have effectively ringfenced and don't think of as "spends"    (c.£15k)

They are adamant that they DID ring the benefits people at the time who told them that it would be disregarded because it was compensation.  So they've assumed it will continue to always be thus!

      Very possibly.

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/365783/hbgm-bp1-assessment-of-capital.pdf

  See 1.159  &  1.181

 It would be good if they had confirmation of the disregard decision in writing, but I presume not.

That's great thank you.

Here's hoping the same rules apply to pension credit as they do housing benefit (which that manual is for?)

Is there a similar manual for PC?

ETA - It's ok, I think I've found it.

kaMelo

Sea_Shell said:

If they spent (some of) it, could they re-accumulate it again?

Whilst I think it's a no the reality is probably yes.
Once the compensation money is spent it's spent and any savings used to replenish that is not compensation. But, unless they exhausted their savings completely I don't see how anyone could possibly determine whether the spent money came from general savings or the sum of compensation.