Savings

[maranatha]

Hi my mum and dad both get pensions credits my mum gets carers allowance for looking after my dad who has had a stroke how much savings are they both allowed to have before they lose money thanks.

[themas]

If they are getting guaranteed pension credit there is no upper limit on the amount of savings, but if they (jointly) have more than �6000 then each additional �500 or part thereof results in a reduction of �1 per week in the pension credit.

[Yorky Lass]

Themas is not quite right. �6000 is the limit for guaranteed Pension Credit. For Savings Credit you have to be over age 65 and the �1 pw week Themas mentions is classed as weekly income for Pension Credit calculations and does not automatically mean it's �1 taken from any payments.
If your mum and dad are already receiving Pension Credit then their savings would have already been verified if they are above �6000. If they have increased it is always best to notify the Pension Service.

[themas]

Yorky Lass - I'm not clear from your post what you think was wrong with mine. Could you clarify please? I was only dealing with guaranteed PC and there is no upper limit on capital for that. I agree the �1 p wk for each �500 above �6000 is treated as income, but that - so far as I can see - always results in a equivalent reduction in the GPC.

[Yorky Lass]

Themas I think you are getting mixed up with guaranteed pension credit and savings credit. There is no upper limit to the savings credit aspect of Pension Credit but there is to Guaranteed Pension Credit. Guaranteed Pension Credit is the same as Income Support.
Savings Credit kicks in for age 65+. I can assure you that the �1 per �500 above �6000 does not result in �1 for �1 deduction from the Pension Credit rate.

[Yorky Lass]

Themas, I've been doing my own research on a online Pension Credit calculator. It appears the "I Know everything friend" who has been supplying me with the info is shock and horror wrong!!! A suitable reprimand has been given. Apologies.

[themas]

Yorky Lass - thanks for that - I was a little concerned at your earlier posts. We all get things wrong from time to time - one of the benefits of different people giving answers.