Savings Pension Credit - Change of Circumstances

Adug

Hi,
I'm trying to get clarity on when a change of circumstances relating to capital amounts (savings etc), needs to be communicated to the DWP as part of an ongoing Savings Pension Credit benefit.

I spoke to the DWP who just kept stating I should contact them with a 'Change of Circumstances" as I felt appropriate. I kept probing for further guidance but didn't get any.

I am aware that for every £500 in savings there is a £1 reduction/ increase in PC per week, however as some of the savings are within a current account this / together with daily interest is a dynamic amount, and continually changing based on pension received/expenditure etc. Therefore one day there could be over £500  and the next day once all the bills etc are paid it could be under £500; which in theory changes the entitlement amount.

I don't think I should be contacting the DWP every day or week or even month ... but they would not provide any guidance , just said if I felt it was appropriate to contact them often it was my decision!

Does anyone have guidance on what they do or further information from the DWP.

Thanks

Spoonie_Turtle

Adug said:

I am aware that for every £500 in savings there is a £1 reduction/ increase in PC per week,

Not quite.  It's every £500 or part thereof above £10,000, so if you're not near that threshold you don't have to worry about working things out at all, until/unless you reach it.

If you are near or above the threshold:

Income is paid in respect of a specific period.
Income becomes capital when it remains unspent after the payment period.

E.g. your Pension Credit is paid every 4 weeks.  Anything left of it when they next calculate your PC payment* would be capital.

So the way to work it out (simplified, I don't know whether in practice you need to take note of reach individual payment period for every source of income) is
Total up everything
Total up the income you've received in the payment period*
Overall total minus total income = capital

*I'm not really familiar with legacy benefits and don't really know exactly when they do the calculations so can't be more specific than that.  With UC it's much clearer!  But Other members are much more knowledgeable and will be able to clarify.

DMG vol 14 chapter 84

"When does income become capital
84922 Where a claimant receives income, at a certain point that income becomes capital. This point is reached when the period for which the income is paid has expired. So the DM should have regard to receipts of income when calculating tariff income deemed to be generated from a claimant’s capital."
https://assets.publishing.service.gov.uk/media/65d32f4ce1bdec2be132222d/dmgch84.pdf