Pension credit what is counted

Auti

hello I was wondering if pension credit has the same system for calculating capital as UC - that income is disregarded in the assessment period it is paid. I am wanting to apply but have no idea how this income/capital works and thresholds etc as if everything all the time is capital I would keep dipping in and out. Thank you for your help.

whizzywoo

The first £10,000 of capital is disregarded for Pension Credit. PC doesn't seem to have an assessment period in the same way as UC does.

There is no upper limit of capital but there is a penalty of £1 per week for every £500 or part of £500 over the £10,000. So eventually, if you had enough capital, the penalty would wipe out the PC you receive.

As far as I am aware the income you receive is disregarded for the period of time it covers. ie I get PC and State Pension weekly so I disregard these from my Capital Total for one week. But I get Attendance Allowance and my husband gets PIP paid every 4 weeks. I've never been able to get a suitable explanation from PC about how to disregard them! So I just disregard them for one week to make sure when I calculate my weekly capital total. So far I haven't had to report an excess.

nannytone_2

https://forums.moneysavingexpert.com/discussion/comment/81913152#Comment_81913152

PIP and AA arearen't coubtd as incoincome for means tested benefits. They are ugniewd dir the period for which they are paid. Any unspent after this time are counted as capital

whizzywoo

https://forums.moneysavingexpert.com/discussion/comment/81913363#Comment_81913363

Yes I know they aren't counted as income but it's unclear how long you hold any unspent part as disregarded. Is the whole 4 weeks' payment disregarded for 4 weeks or is it just one week at a time? ie Week One you disregard 4 weeks, Week Two you disregard 3 weeks, Week Three you disregard 2 weeks and Week Four you disregard 1 week?

I haven't actually done the arithmetic to compare it but in my head disregarding all 4 week's money for a 4 week period puts people paid weekly State Pension and Pension Credit at a disadvantage. When I've queried it with PC they don't know … I suppose it's as broad as it is long because if paid 4 weekly you are paid in arrears …

Robbie64

For PIP and AA, I would disregard them for the length time it is the most recent payment of either benefit (e.g. if both are paid 4 weekly then I would disregard them as capital until the next payment of PIP or AA is received.. However a Decision Maker may look at things differently though what I've suggested does follow a certain logic (it's a current benefit payment and therefore not capital).

Spoonie_Turtle

but in my head disregarding all 4 week's money for a 4 week period puts people paid weekly State Pension and Pension Credit at a disadvantage

Not really because they have a smaller amount to having gone into their account at any one time.

Edit: oh I think I see what you're saying, but since they have less going in it's less likely to accumulate in the first place.

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/81913514#Comment_81913514

I would agree with that. The last payment will always be disregarded

whizzywoo

https://forums.moneysavingexpert.com/discussion/comment/81913569#Comment_81913569

Yes true.

whizzywoo

https://forums.moneysavingexpert.com/discussion/comment/81913599#Comment_81913599

Ahh yes. I have always erred on the side of caution, disregarding the whole of my Attendance Allowance and hubby's PIP just for one week not 4 weeks.

I do sometimes get close to the threshold especially if saving for something big or I know a large car or house repair is coming up. This method would give me a bit more leeway.

I think perhaps that the Opening Poster is not aware that the PC threshold is £10,000 and not £6,000.

Auti

thank you everyone. One question - in my application do I deduct the amount or does Pension Credit deduct when they do their calculations? I have only used turn to us to see if I qualified and put in my total in the bank with no disregard for income received that was to cover that day I did the form (if that makes sense). I did qualify it said as I have a child I am responsible for and get PIP but I have not started the proper application yet.

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/81913773#Comment_81913773

You need to deduct it.