Pension Credit (Care Home)

HillStreetBlues

Friend's father is in care home it's been made permanent so new calculation.
His state pension is £287.41 and share of private pension & annuity is £18.05 totalling £305.46
With allowances his payment towards costs £238.92  having looked at it it seems correct. (all figures per week)

The issue I have the accompanying letter states he could claim pension credit and amount is based on that. But the amount he has seems too high for PC also the figures are based on actual amounts he receives, there is nothing in the calculations about notional income which there should be if entitled to PC.

Am I missing something?   

EDIT  to add not on any disability benefits.

elmer

All calculations  for care include the possibility of pension credit being awarded, perhaps the letter is badly worded if the income exceeds the PC threshold

HillStreetBlues

elmer said:

All calculations  for care include the possibility of pension credit being awarded, perhaps the letter is badly worded if the income exceeds the PC threshold

I tend to agree. It's made to look like a personal breakdown letter, but  rereading it I think it's more generic with spaces left for personal info.

HillStreetBlues

Another PC  question.
Wife now needs to claim PC (it looks like she's entitled) On income I believe she needs to declare her state pension and 50% of the husbands private pension & annuity that he allowed to share with her. Would that be correct?

NedS

HillStreetBlues said:

Another PC  question.
Wife now needs to claim PC (it looks like she's entitled) On income I believe she needs to declare her state pension and 50% of the husbands private pension & annuity that he allowed to share with her. Would that be correct?

If they are not living together (as the husband is now living in a care home), then she is treated as a single person for Pension Credit. So what income does she have? Any income he has is not relevant for her PC calculation.

Any sharing of income that may have been allowed when calculating his contribution towards care home fees is not relevant to the Pension Credit application.

HillStreetBlues

Thanks NedS
The only income in her name is £171.07 state pension, her capital is under £10k (50% of a joint account)
So although for the care home fee he is able to pass on 50% of the annuity & private pension, only the £171.07 state pension should be included
 

NedS

HillStreetBlues said:

Thanks NedS
The only income in her name is £171.07 state pension, her capital is under £10k (50% of a joint account)
So although for the care home fee he is able to pass on 50% of the annuity & private pension, only the £171.07 state pension should be included
 

That's my understanding. For Pension Credit purposes, she is treated as single as she is not living with her partner/spouse. Only income in her name should be included, for that is her income.

If he has some excess income and decides to gift her some money each week to help out with household bills, that is a gift and not income (think how that would be considered under UC, if a relative gave money each month towards bills).

I understand the LA may do some strange things with income when considering what a person can contribute towards their care costs, but that is a LA decision relating to care costs and not relevant to the Pension Credit award calculation. For example, if his wife is on very low income, they may allow him to notionally top up her income to a minimum level out of his income as part of calculating his excess income from which he can afford to contribute towards his care costs. But it's still his income which he pays income tax on.

HillStreetBlues

@NedS
Thanks, got bogged down with looking at it all as one, but now can clearly see they are two separate issues and only her income can be counted.

pmlindyloo

For Pension Credit purposes, she is treated as single as she is not living with her partner/spouse. Only income in her name should be included, for that is her income.

If he has some excess income and decides to gift her some money each week to help out with household bills, that is a gift and not income (think how that would be considered under UC, if a relative gave money each month towards bills).

I understand the LA may do some strange things with income when considering what a person can contribute towards their care costs, but that is a LA decision relating to care costs and not relevant to the Pension Credit award calculation. For example, if his wife is on very low income, they may allow him to notionally top up her income to a minimum level out of his income as part of calculating his excess income from which he can afford to contribute towards his care costs. But it's still his income which he pays income tax on.

I am not sure that this is correct.
The 50% given to his wife is not used as part of the financial assessment for the care home fees.
I believe that the 50% given to the wife would be used as part of the financial assessment for Pension Credit.

This quote from Leicestershire Adult Social Care seems to suggest this:

'You can give up to half of any occupational pension to your spouse/partner who remains at home, and it will be not be counted as income for you in the council’s financial assessment. Please consider getting advice before making this decision as it may affect your spouse/partners benefit entitlement as it will be regarded as income for them for any means tested benefits. You may get advice from Age UK Information and Advice helpline: 0116 299 2278 or your local Citizens Advice. If your spouse/partner passes away or moves into a care home the 50% will revert back to you and your weekly contribution will change.'
I would urge the OP to give AgeUK a call to confirm one way or the other.

HillStreetBlues

@pmlindyloo Thanks
Put a on-line  claim for PC  today. None of the questions were about a private pension or annuity so the 50% issue didn't crop up.
Luckily it wouldn't affect the entitlement to PC just the amount if the 50% is used. I did explain that I wasn't 100% sure how it would be handled and gave the two options although did lean towards it's not counted.
Will do a bit of research in the meantime   

NedS

Given the information @pmlindyloo has posted above, I acknowledge my view may be incorrect. I'd check with Pension Credit that the declared income is correct.