Using Savings - Effect on Pension Credit

WiseOldBird_2

Hi - I hope someone can help. I have an elderly friend aged 75 who has own home, existing on £95 state pension and eating into what savings she already has. We have worked out (at least entitledto.co.uk has) that if she had £3,000 less savings she would qualify for another £80+ per month pension and not have any council tax to pay! A great saving for her. But she's worried that if £3k suddenly disappears out of her ISA the government would know and she would be in trouble. I say that if she'd drawn it out and splashed out on a new second hand car, or a flash holiday, then claimed, they couldn't do anything about it could they?

What do you think - should she splash out? Get rid of the extra £3k? Or would the government find out what was happening? As it is, with all her outgoings it's not going to be long before it disappears anyway!

Appreciate any help re what the pension/council tax people would say - if anything!

Thanks.
Ann.

Mojisola

If the money was spent on something for her needs - house repair/decoration/alterations, a new car, employing a cleaner and/or gardener - it would be hard for the authorities to argue against the spending. Even a holiday abroad while she is still able to travel would be okay. If the money was withdrawn with no sign of it being spent, there might be more of a problem because it may look as if it has been hidden away and so a claim would then be fraudalent.

getting-sorted-sarah

Mojisola is right, as long as it is spent on something sensible and most especially not just given away, that is fine. The DWP will ask for bank statements and ask where the money went, and it could be a bit of a hassle of receipts back and forth but do-able.

If she is successful in a claim for Pension Credit Guaranteed credit (the part due to being on a low income) the Council Tax benefit will be an automatic entitlement, with the filling in of a very simple claim form.

Do make sure you get a proper benefits check first though, through Age Concern or the CAB, to make sure all the figures are correct. I work for Age Concern, pm me if I can help.