Pension Credit and going over £10,000

joanna3293

My mum has been receiving attendance allowance since 2020 which triggered Pension Credit at the lower rate of £72.09, this is made up of guarantee credit and savings credit. She doesnt own her own home and her bank account had around £8K at the time that she was awarded pension credit.  She doesnt spend much and her bank account now has just over £10K in it - I cant figure out if she needs to declare that it is over £10K or if there is another cut-off?  How much is she allowed to have in her bank account?  Thanks

Alderbank

Your mum is allowed to have as much as she likes in her bank account - there isn't a savings limit for Pension Credit.

However each £500 she has over £10K counts as £1 a week income.

joanna3293

Thank you very much for that explanation, that is really useful.  What would be the repercussions to her having income over £10K?  Should we inform DWP so that they reduce her pension credit?  

poppy12345

joanna3293 said:

Thank you very much for that explanation, that is really useful.  What would be the repercussions to her having income over £10K?  Should we inform DWP so that they reduce her pension credit?  

Your first question was about capital. Now you mention income of more than £10,000. They are both completely different things. 

Rubyroobs

Yes she needs to let them know. If it's been over 10k for a while then she will have an overpayment to pay back or they will reduce her pension credit. It must happen a lot when people start getting an extra £150 a week when AA is awarded.

SnowWhiterThanWhite

Rubyroobs said:

Yes she needs to let them know. If it's been over 10k for a while then she will have an overpayment to pay back or they will reduce her pension credit. It must happen a lot when people start getting an extra £150 a week when AA is awarded.

I believe AA is disregarded when calculating PC

joanna3293

poppy12345 said:

joanna3293 said:

Thank you very much for that explanation, that is really useful.  What would be the repercussions to her having income over £10K?  Should we inform DWP so that they reduce her pension credit?  

Your first question was about capital. Now you mention income of more than £10,000. They are both completely different things. 

Sorry, I meant that her bank account has gone over £10k, she has income from my late father's pension, her state pension and her attendance allowance and pension credit

Robbie64

You posted that her bank account has just over £10k in it. How much over £10k? Also has it recently just gone over £10k or is this a regular thing? if it is just over £10k is it caused by her benefits / pensions going into her bank account and temporarily taking the amount in her account over £10K (that is, if you deducted from her bank balance her last payment of pension credit, state pension, income from her late husband's pension and her attendance allowance would it take her balance to below £10k?).

joanna3293

Robbie64 said:

You posted that her bank account has just over £10k in it. How much over £10k? Also has it recently just gone over £10k or is this a regular thing? if it is just over £10k is it caused by her benefits / pensions going into her bank account and temporarily taking the amount in her account over £10K (that is, if you deducted from her bank balance her last payment of pension credit, state pension, income from her late husband's pension and her attendance allowance would it take her balance to below £10k?).

Hi, yes it is around £10,200 and this has happened in the last month.  Yes it is caused by her benefits/pensions going into her bank account which seem to be slightly more than her outgoings as now that she is more frail she doesnt leave the house very often and just isnt spending much.  Yes if pension credit and pension is deducted she will be below £10,000.  I just cant seem to find any information on any paperwork or a website that explains what to do in this situation.  Does she just let her bank balance creep up slowly or should her pension credit be reduced?  

HillStreetBlues

joanna3293 said:

Robbie64 said:

You posted that her bank account has just over £10k in it. How much over £10k? Also has it recently just gone over £10k or is this a regular thing? if it is just over £10k is it caused by her benefits / pensions going into her bank account and temporarily taking the amount in her account over £10K (that is, if you deducted from her bank balance her last payment of pension credit, state pension, income from her late husband's pension and her attendance allowance would it take her balance to below £10k?).

Hi, yes it is around £10,200 and this has happened in the last month.  Yes it is caused by her benefits/pensions going into her bank account which seem to be slightly more than her outgoings as now that she is more frail she doesnt leave the house very often and just isnt spending much.  Yes if pension credit and pension is deducted she will be below £10,000.  I just cant seem to find any information on any paperwork or a website that explains what to do in this situation.  Does she just let her bank balance creep up slowly or should her pension credit be reduced?  

Having £10,200 would be totally fine as the benefits paid in that period are classed as income, not capital
What you need to do is take the monies atm £10,200 deduct AA and pension paid  then that leaves the capital. that money only becomes capital in the next payment period.

Spoonie_Turtle

And if she's received Cost of Living Payments in the last few years which have accumulated, they're disregarded indefinitely. 

Ditto Winter Fuel Allowance (although that may only be disregarded for 12 months, I'd have to check).