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

[factor-fiction]

Okay. Maybe I'm missing something but I assume he's aged at least late 70s and if he's still got the £30000 and hasn't touched it I'm not sure why he's so concerned about not getting Housing and Council Tax benefit. He should still seek clarification of course but at this difficult time he should try not to get too concerned- maybe he just needs reassurance it will be looked at and he will get the benfits if his savings ever fall to £16000

[jim360]

Still there, Awryn?

I received a reply this morning with some details and advice but also a question:

"What I'd need to know is how much State Pension Credit they were getting while the wife was alive, when that stopped, and how much Retirement Pension he was awarded."

Those are probably specific questions so, again, I'd suggest that you email me at the address given earlier, if you still want a more detailed opinion. I'll post my contact's full reply shortly.

[arwyn]

Hi Jim, Thank you for everything but I now have not got that information.
I gave him all the paperwork back as he is now at the stage of *wait and see*
He asked my help to close down everything to do with his wife and to apply for it all again in his name. I did this and he will only ask me again if he thinks an appeal is needed. He can't understand how it was disregaded one day and MAY not the next.

So I may ask your help again if that would be ok with you.
I expect he should hear soon. Thank you again.

[jim360]

OK, I'll await further details if you want to pass them on and provide below the general answer I received. Hopefully all abbreviations used should be clear. Please note that without full access to the case in question and particularly the figures any advice contained could be just speculation rather than fact.

"
The law allows a person 3 months to change their mind about whether to have extra weekly pension or a lump sum, and that can be extended in certain circumstances. However, I'm not sure that the ability to extend covers this scenario. That's because I think the original advice that the lump sum didn't make any difference was probably correct. I'd have thought they were getting State Pension Credit rather than income support if they were both over pension age.

A lump sum of deferred retirement pension is disregarded as capital for SPC for the person's lifetime. I assume that's the same whether it's paid during an award, or before making a claim, but the suggestion seems to be that it's different. I can't see any rule to support that, but I'm not a SPC expert. On that basis I'd have thought the SPC claim ought to succeed, and he'd then be able to get the HB and CTB back. But of course, it all depends how much retirement pension he's entitled to on a weekly basis. I can't help wondering if it's the award of RP that made the difference, not the lump sum. If it's too much, then he might not get SPC. I can't say without more information.

I should point out that if he does manage to change to weekly increments and repay the lump sum, the disregard stops and he might have to pay back HB and CTB that was paid to his wife, because they were a couple and what's his is hers and vice versa.
"

[jim360]

Thanks! I'm just the messenger though.

[arwyn]

Jim I understood all that except *RP*?
He declaired the lump sum from day one, and their reply (as you might expect) was "we know all about how much you have" ha ha.

Do you work for them? thanks again..

[jim360]

RP = Retirement Pension. (I think!)

I do not work for the DWP but know someone who does. Keep in touch if you hear any more, although any advice beyond that I've already shared would require specific knowledge of the case.