Pension Credit Question

Discussion in 'Legal and financial issues' started by sixy74, Oct 12, 2018.

  1. sixy74

    sixy74 Registered User

    Jul 4, 2018
    100
    Hi All
    Mum has been awarded pension credit guarantee as Dad is now in a care home and mum is on a low income.
    During the application process Mum was told that only her income should be recorded as her and dad are no longer classed as a couple for pension credit calculations.
    Dad receives a small company pension and half of it goes towards his LA care home fees, however the other half is disregarded by the LA and is available for mum to access, this half is still in Dads name and is paid into Dads bank account. The DWP have included this half of Dads pension when calculating Mums pension credit entitlement however they have entered this figure as if it were Mum who had a private pension, I have written to DWP on her behalf but have yet to receive a reply, so the question I am basically asking is should this half of Dads pension be taken into consideration or not, ie it’s Dads money and in his name so in theory it shouldn’t be but as Mum can spend it should it be ?

    Thanks in advance
     
  2. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,593
    Salford
    The DWP must come across this quite often so there must be an answer, but they do sometimes take their time.
    My mum got pension credits and I asked if my brothers and I gave her a regular amount of money (as a gift) would this be treated as income, they said not as it was a gift so unless she saved the money and went over certain thresholds then that would trigger a cut in her pension credits.
    I guess it depends on whether they treat it as a source of income or a gift, it's not her pension so in that sense it's a gift not a source of income she's entitled to as such.
    It'll be interesting to see what someone with experience has to say.
    K
     
  3. sixy74

    sixy74 Registered User

    Jul 4, 2018
    100
    Thanks for your reply, I’ll let you know what they say
     
  4. sixy74

    sixy74 Registered User

    Jul 4, 2018
    100
    Guys what is a reasonable amount of time to wait for a reply to my above question from DWP. I sent the letter last Wednesday so it will of hit the DWP mail sorting centre on Thu or Fri then it has to be transferred to the correct department that's if it doesn't go missing from previous experience.
     
  5. sixy74

    sixy74 Registered User

    Jul 4, 2018
    100
    Hi All
    Well almost 6 weeks since I posted this question and today I finally have an answer after being totally ignored by DWP and in the end having to ask my local MP to intervene.
    Mum was asked to clarify if she would be using her half of Dads pension for her own needs or for Dads needs, she answered honestly by stating that she would be using it to pay Dads life insurance policies his CC bill and to buy him clothes etc and food that she takes in daily to the care home as the care home food is difficult for Dad to eat at times.
    The reward she received today is now lower than than the original award as DWP have now listed Mums half of Dads pension as an income from partner rather than Mums private pension which they did originally. She now has to pay back 10 weeks worth of the Pension Savings Guarantee as DWP had wrongly recorded Mum as having a private pension even though they where told it was half of Dads not her own.

    I just don't understand how they can say at the application process that Mum and Dad are no longer financially connected for Pension Credit purposes, yet this calculation obviously means that they are.

    At least its only a small amount to pay back , as it could have been a lot more if I hadn't of contacted them.
     
  6. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,593
    Salford
    I wonder if that's why you were treated differently, I can only think that income from a partner is treated differently to as in my case it was income to a parent not to a partner and I was told that was OK to do it, subject to the savings limits.
    K
     
  7. sixy74

    sixy74 Registered User

    Jul 4, 2018
    100
    Hi
    Yes maybe it is.
    I just don’t understand their decision as they specifically asked if the money was used for my Dads needs or my Mums needs, now if mum would have said her own needs I could understand their decision but as she said Dads I just don’t get it lol , why ask if it makes no difference
     
  8. Normaleila

    Normaleila Registered User

    Jun 4, 2016
    522
    Small point - by 'his CC bill' do you mean community charge (council tax)? If so, he shouldn't have to pay that.
     
  9. sixy74

    sixy74 Registered User

    Jul 4, 2018
    100
    Hi
    Sorry I meant credit card
     
  10. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,593
    Salford
    She shouldn't be using her half of his pension to pay for things for him, she should be using his half. If he "gifts" her half of his pension and she's using it to pay for things for him then she could be deriving little or no benefit from the gift.
    I'd sent the decision to your MP again, if she's using the money to pay for things for him not herself then how is that income?
    They can't have it both ways, either he gifts her the money and she keeps it or he transfers money to her to pay for his expenses on his behalf, if it's gifted to her and she keeps it then it's a gift, if she just holds the money to pay bills for him it's not a gift in my view. If he's still deriving the benefit of the money not her so it's not a gift as such it's a reimbursement of expenses incurred on his behalf. Money I spend on my credit card for work related items isn't treated as my income, it's me getting paid back for expenses I've incurred on the companies behalf like fuel, entertaining or any other expenses that are business related so it isn't part of my income for tax/legal purposes same as if I buy a bottle of milk for work and get it back from petty cash.
    I'd challenge the decision if she's spending all her half on him.
    K
     
  11. sixy74

    sixy74 Registered User

    Jul 4, 2018
    100
    Thanks for your input

    I totally agree with everything you have said.
    How can you be asked if you use your half of your husbands pension for your own needs or your husbands needs and answer my husbands needs, then have your pension credit cut ?
    If mum was using it to buy clothes for herself or have a night out then yes, but when it's been used for Dad then no
     
  12. Nichola1965

    Nichola1965 New member

    Nov 20, 2018
    1
     
  13. sixy74

    sixy74 Registered User

    Jul 4, 2018
    100
    Hi
    Mum can't use Dads half of his pension as the Council take that to pay towards Dads care home fees. He is left with around £25 a week but that doesn't cover his outgoings or really leave much at all for anything he requires , as the care home only supply the basics.
     

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