Pension Credit - Moving Back In With Parents

vicks11 · 19 January 2020 at 1:52PM

Hello, I’m in need of some help.

I’m having to move back in with my parents and would like to know how this would effect their benefits. They are both in their late 70s and are on guarantee pension credit, this allows for all of their council tax to be paid, they have paid off the mortgage so no housing benefit is involved.

If I move back in does this effect the amount of pension credit they receive? Also will I have to pay the entire council tax bill on my own? I work full time, receive no benefits (apart from the single person 25% council tax discount) and earn below the average wage, The council tax bill for my parents house would be quite high so I need to see if it’s viable for me to move back as I don’t think I could manage the council tax on my own.

Also what happens with their other benefits such as extra winter heating payments, dental, tv licence etc?

calcotti · 19 January 2020 at 2:12PM

Do they get any disability benefits? If they both get a disability benefit then the Pension Credit could include an additional amount known as a Severe Disability Addition which they will lose if you move back in. If they do not have a Severe Disability Addition in the Pension Credit award then their entitlement will not change because of you moving in.

In respect of council Tax you will be expected to contribute to the Council Tax so the help they get will reduce. you will not be expected to pay all of the Council Tax. When you move in they need to inform the local authority. If the person named on the council tax bill gets a disability benefit you will not be expected to contribute. If you receive disability benefit you will not be expected to contribute. https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/help-with-your-council-tax-council-tax-reduction/how-your-council-tax-reduction-is-worked-out/council-tax-reduction-non-dependant-deductions-for-pensioners/

The other things you highlight are not affected (not sure about the TV licence after May when the rules change).

vicks11 · 19 January 2020 at 2:54PM

Thanks so much for your reply, you have put my mind at ease.

None of us receive any disability benefits, of course I don’t mind making a contribution towards the council tax but I was worrying they would lose all their council tax reduction and I would be facing a £300 monthly bill on my own which would have been extremely difficult for me. They are helping me out by letting me move back in and I would hate for them to be penalised because of it, as I mentioned they only have the state pension to live on.

Thanks again for the reply and link, it’s much appreciated.

bigbill · 19 January 2020 at 4:25PM

calcotti wrote: »

In respect of council Tax you will be expected to contribute to the Council Tax so the help they get will reduce. you will not be expected to pay all of the Council Tax. When you move in they need to inform the local authority.

This may well not apply for the first 26 weeks after you move in, the local Council will keep them right on this point as it can vary depending where you live?

Robbie64 · 19 January 2020 at 11:45PM

Although individual councils run their own Council Tax Support schemes for cases where the Council Tax payer is a pensioner the various schemes are more or less the same. I've just checked the non-dependent deduction rates for a number of councils and they all are more or less the same for where the Council Tax payer is of pension age.

The maximum deduction rate for a non-dependent is about £12.20 per week. Most councils have this as the maximum rate and it is for non-dependents with a gross weekly income of about £440 to £450 per week. Below that gross weekly income a smaller deduction is made.

Pension Credit - Moving Back In With Parents

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