Pension Credit - Motorhome and Canal Boat - Assets?

doodling

Hi,

I am aware of a couple who own their own home and have a car, a motorhome and a narrowboat.  They are on basic (pre 2016) state pensions and their cash assets are diminishing.  They believe that it will shortly be worthwhile claiming pension credit to bring their joint income up to ~£330/week (give or take the effect of cash assets above £10k).

I was under the impression that whilst the house and car might be disregarded as assets, the motorhome and boat (probably a joint value of over £80k) would not be and they are therefore a long way away from being eligible for any pension credit.

Can anyone confirm whether I am correct?

kempiejon

When applying for benefits I don't recall there being a box for motor homes etc. Savings and investments and limits reduce income that's it isn't it?

Grumpy_chap

There was a recent thread regarding UC and a static caravan. 
https://forums.moneysavingexpert.com/discussion/6527073/uc-and-unearned-income#latest

As I understand from that thread, the static caravan is classed as a personal possession and not capital unless it generates an income.  This is confirmed at the following (dated) online resource:
https://united-kingdom.business.narkive.com/72ryEmeW/does-owning-a-static-caravan-affect-social-benefits

I would, therefore, assume that the rules for PC would also consider the motorhome and the narrowboat as also being personal possessions and not capital (again, assuming no income is derived from these possessions).

The couple might wish to consider whether, if their assets are diminishing (expenditure exceeds income) and they are approaching the point where PC is a valid consideration, do they have sufficient income to maintain the motor home and narrow boat?  I do not believe that either are cheap to sustain.

Pollycat

doodling said:

Hi,

I am aware of a couple who own their own home and have a car, a motorhome and a narrowboat.  They are on basic (pre 2016) state pensions and their cash assets are diminishing.  They believe that it will shortly be worthwhile claiming pension credit to bring their joint income up to ~£330/week (give or take the effect of cash assets above £10k).

I was under the impression that whilst the house and car might be disregarded as assets, the motorhome and boat (probably a joint value of over £80k) would not be and they are therefore a long way away from being eligible for any pension credit.

Can anyone confirm whether I am correct?

You should read the sticky at the top of this board.
Your post does not sound like you are looking for help with claiming benefits.

doodling

Hi,

Pollycat said:

doodling said:

Hi,

I am aware of a couple who own their own home and have a car, a motorhome and a narrowboat.  They are on basic (pre 2016) state pensions and their cash assets are diminishing.  They believe that it will shortly be worthwhile claiming pension credit to bring their joint income up to ~£330/week (give or take the effect of cash assets above £10k).

I was under the impression that whilst the house and car might be disregarded as assets, the motorhome and boat (probably a joint value of over £80k) would not be and they are therefore a long way away from being eligible for any pension credit.

Can anyone confirm whether I am correct?

You should read the sticky at the top of this board.
Your post does not sound like you are looking for help with claiming benefits.

Well I'm clearly not looking for help but the couple I know are.  I apologise if my phrasing suggested otherwise.

As a bit of background, they have always had too much money to make a pension credit claim.  This year they were going to sell the boat but instead they have decided to spend some money on it with the aim of having a nice boat and with the side effect of reducing their cash sufficiently to make a pension credit claim worthwhile.

I didn't want to see them in a position where they spent the money on the boat but didn't get the benefits side effect they had hoped for.  The choice between spending the money and selling is finely balanced in their mind and the potential increase in benefits is encouraging then to keep the boat.

Alice_Holt

doodling said:

Hi,

Pollycat said:

doodling said:

Hi,

I am aware of a couple who own their own home and have a car, a motorhome and a narrowboat.  They are on basic (pre 2016) state pensions and their cash assets are diminishing.  They believe that it will shortly be worthwhile claiming pension credit to bring their joint income up to ~£330/week (give or take the effect of cash assets above £10k).

I was under the impression that whilst the house and car might be disregarded as assets, the motorhome and boat (probably a joint value of over £80k) would not be and they are therefore a long way away from being eligible for any pension credit.

Can anyone confirm whether I am correct?

You should read the sticky at the top of this board.
Your post does not sound like you are looking for help with claiming benefits.

 This year they were going to sell the boat but instead they have decided to spend some money on it with the aim of having a nice boat and with the side effect of reducing their cash sufficiently to make a pension credit claim worthwhile.

I didn't want to see them in a position where they spent the money on the boat but didn't get the benefits side effect they had hoped for.  The choice between spending the money and selling is finely balanced in their mind and the potential increase in benefits is encouraging then to keep the boat.

  Then they should be aware that spending capital with the intention of claiming a means tested benefit, could be regarded as deprivation of capital. The DWP will then deem that they still have the capital (notional capital).

 https://www.entitledto.co.uk/help/deprivation-of-savings-and-other-capital-universal-credit

(Also applies to PC)

Grumpy_chap

doodling said:

As a bit of background, they have always had too much money to make a pension credit claim.  This year they were going to sell the boat but instead they have decided to spend some money on it with the aim of having a nice boat and with the side effect of reducing their cash sufficiently to make a pension credit claim worthwhile.

In addition to the qualifications around deprivation of assets, something seems to not add up here.
If the couple may have savings and income both low enough for the couple to qualify for pension credit, it is difficult to see how the ongoing running costs of a motorhome plus canal boat will be met.