Pension Credit for Service Charges Max Limit

8dayweek

I think you’ve misunderstood what I meant, but I think you’ve got to the same place as me with the same calculation.  

Essentially, looking at the ADM someone’s PC entitlement is:

PC base rate (£218.15) + eligible Service Charges (weekly) - State Pension

If the total of the PC base rate + any add on’s is higher than State Pension then there’s a PC award. 

(Obviously there’s other premiums, deductions for Private Pensions, notional income for capital etc etc too if applicable, but as a basic calculation it’s total PC added up minus SP).

I suspect the reason nobody can say an exact amount is because Service Charges can vary so much (and some are completely ineligible) - so ideally you’d want to see a breakdown of HOW the Service Charges are calculated before you commit so you can compare to the ADM to work out what PC would consider “eligible” to then get a more accurate calculation. 

If your SP is £5 above PC threshold, for example, then you’d be topping up Service Charges by roughly that amount a week (assuming all Service Charges are eligible). 

ExSpark

Yes. That would make it right. I think I did misunderstand what you meant.

So if you take some actual values of state pension being £226.78 and an arbitrary value of £200 for service charge and ground rent using the equation of:
Pension base rate (£218.15) + eligible service charges (weekly) - state pension = PC entitlement

That would be
£218.15 + £200 - £226.78 = £191.37

Not sure what you meant in the last sentence as that seems to say I would only get £5 towards service charges, unless I misunderstood what you meant.
If the SP is £5 above the PC threshold (218.15) the PC entitlement for service charges would be reduced by £5, not topped up by £5 as in the calculation above.

8dayweek

Yes sorry, I meant if your basic SP is £5 above the basic PC threshold (before any other premiums) then this amount would effectively always be the difference between your Service Charges and PC award. 

PC base rate £218.15 + £200 Service Charge - £223.15 SP = £195 PC.

PC would be paying £195 towards your Service Charges (so to speak) and you’d be “topping up” an additional £5 to cover them in full. 

HillStreetBlues

ExSpark said:

I might not have explained properly. I am aware of the state pension issue. I receive the full amount of £226.78 so I would not claim PC for that.
It's only the service charge and ground rent that's the issue. I know that even though I wouldn't get it for topping up state pension I would still get it for that.
Also, there is no issue with savings as the situation will not exist at the moment because my savings, after I purchase, would be above the limit that I could claim PC.
I am thinking about the future as my savings start to dwindle. I know that this may not happen for years yet but I'm trying to get an idea of the situation with PC as it is now to get an idea about what's possible in the future.
I am aware that PC would only for service charge and ground rent is only paid of the essential part and not extras that are provided, like swimming pools etc. but I would avoid purchasing a retirement flat that has added amenities. I would look for the basics. Anyway, I would also be looking for a lower priced flat so will only have the basics.
My only question is, is there a limit to the amount of PC for service charges and ground rent that are charged for the essentials only?

You're £9 over the PC limit,
Now if your SC & GR was £50 a week  then PC would be £41 pw with capital of £10,000 or below
If you had capital of £30,000 you would still be entitled of PC of £1 pw
If it was £75 pw SC & GR then PC would be £66 pw with capital of £10,000 or below and if capital was £42500 you would still be entitled of PC of £1 pw

ExSpark

Thanks for your comments everyone

Northern_Wanderer

Housing costs that can be included in pension credit

Only certain housing costs can be included in pension credit. These are:

• service charges for  buildings insurance that's required under the client's lease

• Service charges for minor repairs and improvements

• in England and Wales, rent and ground rent (if it's 21 years or less, check if they can get housing benefit instead)
  

• in England, Wales and Scotland, payment under a co-ownership scheme

• in England, Wales and Scotland, payments made by Crown tenants or licensees

• charges for the cost of hiring a tent and a site, if this is the claimant's home (but not the site rent for a caravan or mobile home)

• in England and Wales, rentcharges

If in supported accommodation, they might not get help with service charges.

How housing costs are calculated

The weekly amount of housing costs included in a pension credit housing costs calculation is made up of eligible housing costs which are not loans, for example, service charges. 

The claimant will receive the normal weekly amount for the housing costs which can be covered by pension credit. This may not be the total amount, for example, if service charges include an amount for fuel, this will be deducted. If the other housing costs are due to be paid at other intervals, a weekly amount is worked out by dividing the yearly charges by 52.

The CPAG Welfare Benefits and Tax Credits Handbook would have more info but I don't have it.

Not sure if this helps you....I'm not seeing a maximum rate lsited.

ExSpark

Thanks Northern_Wanderer

Northern_Wanderer

Murphybear said:

My experience is as follows.  putting it simply:

I have state pension plus 2 small works pensions.  I was not eligible for Pension Credit.  I got about half my rent paid

Due to a number of health issues I applied for and received Attendance Allowance.

I was told by CA that this would change my eligibility for PC.

I applied for and got PC.  I now get all my rent paid

This is because you now get a severe disability addition of £81.50 due to the AA award, so this is added to the £218.15 standard minimum guarantee. You therefore get your income topped up to £299.65/ week.

Murphybear

Northern_Wanderer said:

Murphybear said:

My experience is as follows.  putting it simply:

I have state pension plus 2 small works pensions.  I was not eligible for Pension Credit.  I got about half my rent paid

Due to a number of health issues I applied for and received Attendance Allowance.

I was told by CA that this would change my eligibility for PC.

I applied for and got PC.  I now get all my rent paid

This is because you now get a severe disability addition of £81.50 due to the AA award, so this is added to the £218.15 standard minimum guarantee. You therefore get your income topped up to £299.65/ week.

Thanks, that’s helpful