Department Of Works And Pensions.

[arwyn]

An O.A.P has asked me to find out the following-

An OAP thought he was getting his state pension for many years. Some how it came to light that he was'nt.

The DWP owed him alot of money, they deducded off the money he had been getting (maybe income support) and the balance was still alot of money.

The DWP said he could choose between extra money each week or a lump sum.

As the OAP thought he might not live long enough to get it all back weekly so he choose a lump sum.

The problem he now has is that he has too much money in the bank to receive Council tax and housing benefit that he was claiming no problem.

Had he chose the payment weekly he would have been fine. This never entered his head untill it was to late.

He wants to know where he stands as he made the decision without asking advice from anyone.

TIA

[DJHawkes]

It's abit like being self employed and not having any work i guess, you take the rough with the smooth and bite the bullet in lean times, though it seems bizarre that he was not sent his pension forcast etc automatically

[arwyn]

DJ, he says he rang them a few times and was told he was getting his pension.

It now looks like it will all go on rent and council tax (as does everyone elses)
but had he took it weekly it would'nt have.

[jim360]

Claiming a lump sum should not affect the entitlement to Housing Benefit or Council Tax Reductions according to DWP guidelines. Advise him to contact the DWP/ local council about it and clarify the source of his new-found money if there is a problem.

[jim360]

Further to my last post, if of course he were receiving no state pension at all until recently then it's possible that his assessment criteria has changed -- again advise him to contact the Council.

[arwyn]

Jim I have done all this for him, They said unless he is awarded Pension credits he will have to pay until he has below 16K. He now has too much money to claim pension credits, but he has still applied
He has the letter that offered him a weekly payment or a lump sum.

[jim360]

I'll get back to you.

[bednobs]

I think you have it there arwyn, EVERYONE spends their pension on rent and council tax. He was "lucky" to be getting his rent and council tax paid, but now like everyone else, he'll have to spend his own money on living expenses. if he had been receiving his pension, he might not have had ct and housing benefit anyway for the amount of years he did. It is swings and roundabouts and all works out i expect

[factor-fiction]

There must be a misunderstanding. I am sure when I looked into this once they disregard for a period any capital that is the result of a one off payment which is in effect back-pay. There will come a point though where they expect people to use up the capital.
It seems odd though that he didn't notice he wasn't getting his pension. Maybe he had other savings and income and would have had too much money anyway to get Housing benefit and Council tax benefit.

Something seems wrong here. It's either a misunderstanding or a mistake. He/should go to CAB.

[arwyn]

bednobs you could be right, he was underpaid for 10 years, so maybe now it is balancing out.

[jim360]

I've forwarded your question onto a DWP employee but you may not get an answer until Wednesday or Thursday. Can you wait?

[arwyn]

Factor at the time 18 months ago he was told it was disregarded.
His Wife passed away last week and he has asked me to help him. As everything was in his wifes name CTB and HB he has had to apply for it all again but this time they are saying its different.

[jim360]

And also can you send me any more relevant details via my email [email protected], specifically:

- more exact figures
- relevant dates
- what you have done so far.

[arwyn]

Jim That is so nice of you thank you. yes of course I can wait.

I love AB X

[factor-fiction]

That may point to the answer then, arwyn. It would have been disregarded initially but they will only disregard it for so long. Maybe 18 months was the period.

[arwyn]

Jim I'll do that here as no one knows me
Was 70K+ (they took off what he was giving maybe income support)
£30K+ was what was left.
10 years worth of under payment.
He got it 18 month ago.

I'll type more

[arwyn]

He was told it was disregarded back then.

C.T.B plus H.B plus pension credit was in wifes.

Wife died last week and he asked me to help.

so far applied for Ctb HB and pension credit but waiting to hear from all.

[jim360]

I've sent off those details. I would recommend that you contact me via email as it will be easier to answer you there, and you may need to share more personal information (although it isn't likely). Either way there is no rush as Wednesday is the earliest you can expect a more detailed answer.

At a preliminary guess though it might be related to the fact that previously it was your friend's wife who was receiving the benefit and that now it is your friend himself claiming the case is being treated separately.

[factor-fiction]

It needs sorting out but if he still has a large part of the £30000 left in the bank I think he shouldn't let it worry him too much at this difficult time.
Hopefully jim's friend can give an answer. If not, ask the DWP again or ask CAB. I feel though that they will only disregard such a big sum for a limited period, although if the underpayment was for 5 years it seems fair to me to allow him nearer 5 years to spend it

[arwyn]

FAO Jim, Thank you for all you have done, I'll keep coming back to this thread, but I too think your last paragraph is correct and it's all changed since his passed away.


FAO Factor, Thank you for your replies, it was an under payment for 10 years, in the 18 month he's had it he has'nt touched a penny, He leads a very simple life bless him, he's very mixed up as his wife saw to everything.

[arwyn]

*since his wife passed away*