Will sale of home mean loss of pension credit?

E321

Registered User
Feb 26, 2024
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0
My mother is in a private care home. Since she moved in 18 months ago, the council has paid most of her fees as we commenced a deferred payment agreement. Her home is currently under offer and within a few weeks she should receive £280,000 from the sale. A chunk of this will then be paid to the council to cover the fees (plus interest) they have paid. From then on, her fees (£6,000 per month) will be paid from the proceeds of the sale and the council will no longer be involved.

2 question I hope you can help me with please.

Will my mother lose her pension credit as she will now have her assets in cash rather than in her property? If that is the case it seems unfair as we have been forced to sell her home to pay for her care.

What happens when the money runs out? By which I mean, when it drops to ?£23,000?

Thank you
 

Rayreadynow

Registered User
Dec 31, 2023
459
0
If you have £10,000 or less in savings and investments this will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week

£270000 / 500 = £540 per week but every week the amount reduces as the savings reduces and you would need to notify every week so they can recalculate.
 

E321

Registered User
Feb 26, 2024
10
0
Thank you. In other words she is going to be penalised for selling her home to fund her care. Something fundamentally wrong about that.
 

Rayreadynow

Registered User
Dec 31, 2023
459
0
Unless the sale of the property takes longer than expected ? In which case I would assume entitlement to pension credit is kept.
 

Jessbow

Registered User
Mar 1, 2013
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Midlands
If she continued to get pension credit, her 'fund value' would last longer- so its as broad as its long really
it will presumably kick in again when she gets thru her funds
 

jackdog35

Registered User
Aug 21, 2022
377
0
Nottingham
When she comes near to £23,000 you need the council to do a financial assessment so they can work out what your mum will contribute. This is what we’re coming up to. We had one assessment but they said my mum still had too much money and are having to come back to do another one
 

E321

Registered User
Feb 26, 2024
10
0
If she continued to get pension credit, her 'fund value' would last longer- so its as broad as its long really
it will presumably kick in again when she gets thru her funds
She currently contributes about 80% of her pension and pension credit towards her care fees plus service charges on her property so she isn’t building any savings.
 

E321

Registered User
Feb 26, 2024
10
0
When she comes near to £23,000 you need the council to do a financial assessment so they can work out what your mum will contribute. This is what we’re coming up to. We had one assessment but they said my mum still had too much money and are having to come back to do another one
Thank you
 

canary

Registered User
Feb 25, 2014
25,563
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South coast
She currently contributes about 80% of her pension and pension credit towards her care fees plus service charges on her property so she isn’t building any savings.
I think what @Jessbow was saying was that if your mum were receiving more in the way of pension/pension credit then she would simply be paying more towards her care fees (and SS would pay less), so she wouldnt actually end up with any more money

No, she wont be able to increase her savings, it is purposely structured so that you run down your savings until you get to £14,000
 

E321

Registered User
Feb 26, 2024
10
0
I think what @Jessbow was saying was that if your mum were receiving more in the way of pension/pension credit then she would simply be paying more towards her care fees (and SS would pay less), so she wouldnt actually end up with any more money

No, she wont be able to increase her savings, it is purposely structured so that you run down your savings until you get to £14,000
But she will be paying the full care fees anyway once her flat is sold.
 

canary

Registered User
Feb 25, 2014
25,563
0
South coast
But she will be paying the full care fees anyway once her flat is sold.
How long will the money from selling her flat last before she gets down to the £23,500 mark and SS again start paying towards her care?
If she had pension credit, how many more weeks would she be self-funded before SS start paying?

I doubt it will make much difference.
 

jackdog35

Registered User
Aug 21, 2022
377
0
Nottingham
Yes she gets paid something with a reference of DWP AA which I assume is attendance allowance
Are you allowed to still get attendance allowance if council is paying fees? I was told by dwp it would stop. Also can I ask if you know how much the council leave your mum with for personal items each week? I’m worried if my mum’s pension and pension credit get taken there won’t be much left for personal things
 

E321

Registered User
Feb 26, 2024
10
0
Are you allowed to still get attendance allowance if council is paying fees? I was told by dwp it would stop. Also can I ask if you know how much the council leave your mum with for personal items each week? I’m worried if my mum’s pension and pension credit get taken there won’t be much left for personal things
She pays £231 per week to the council towards her care costs. They pay the care company the full amount of £1,269 per week. She still has to pay service charges on her flat which are around £90 per week. This leaves her with about £100 a month leftover.
 

E321

Registered User
Feb 26, 2024
10
0
How long will the money from selling her flat last before she gets down to the £23,500 mark and SS again start paying towards her care?
If she had pension credit, how many more weeks would she be self-funded before SS start paying?

I doubt it will make much difference.
The money from the sale will last about 3 years max. It’ll be about £72,000 a year from April!