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Pension Credit

TessR

Hi all,

I have LPA for my elderly mother. We have just sold her property, and she has temporarily moved in with me until I can find and BUY her own bungalow, max 6 months. She receives State Pension and Pension Credit; will she now lose the Pension Credit? Is this based on my income? As I have no income - I am a full-time student. As I understood it, she is seen separately from my income anyway? However, I just spoke to DWP, who said she would lose it? Surely that's not right? Any advice greatly received. Why would she lose it.?

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Comments

Kimi87

There are certain elements to Pension Credit that rely on the recipient living alone or being treated as living alone (other person gets a qualifying disability benefit etc), if they no longer live alone losing that element can mean losing overall entitlement to Pension Credit.

I'd recommend going through Mum's paperwork to ascertain her Pension Credit award breakdown, and contact a welfare advisor within a third party organisation (ie not DWP directly).

https://advicefinder.turn2us.org.uk/

https://www.ageuk.org.uk/contact-us/information-and-advice/

Wibbles

https://forum.scope.org.uk/discussion/149105/pension-credit

I asked AI :

I can understand why you're worried, especially when you're trying to find your mum a suitable bungalow and have taken her in temporarily to keep her safe and settled.

The important point is that your mum does not normally lose Pension Credit simply because she moves in with her adult child. And your income, or lack of it as a full-time student, is not usually the deciding factor in her Pension Credit entitlement.

However, there are a couple of important issues in your situation that could explain why the DWP told you her payments might stop — particularly the sale of her property and what has happened to the money from that sale.

Why might the DWP say she will lose Pension Credit?

There are three separate issues to distinguish.

1. Your income should not normally be counted as hers

Pension Credit is assessed on your mum's own income and capital, together with those of a spouse or partner if she has one.

An adult child is not treated as a partner for Pension Credit purposes. So, because she is living with you, the DWP would not normally add your income to hers. Your being a full-time student with no income should not, in itself, affect her entitlement.

2. The money from selling her house could be the key issue

This is probably the most important thing to investigate.

Pension Credit is means-tested, and the proceeds of selling a property can affect entitlement. The normal rules are:

The home someone ordinarily lives in is generally disregarded when calculating their capital.
Once the home is sold, the proceeds may be treated as capital (money or savings)

However, there is an important exception relevant to your mum. Money tied up in buying a replacement home can receive special treatment under Pension Credit rules. The rules provide for a property bought with the intention of becoming the claimant's home within 26 weeks to be disregarded, with the possibility of a longer period in certain circumstances.

That does not automatically mean every pound from a house sale is disregarded while someone looks for another property. The exact circumstances and how the money is held matter. But the fact that your mum intends to buy another bungalow is very relevant and should be explained clearly to the Pension Service.

3. Is there a rule about living with family for six months?

There is no general rule that says someone automatically loses Pension Credit after moving in with their adult child for six months.

The DWP does need to be told about a change of address, and it may reassess entitlement. But your mum's temporary stay with you is not, by itself, proof that she must lose Pension Credit

The crucial question is what specific rule the DWP believes applies to her. They may have been referring to the house sale and her capital rather than your income or the fact she is staying with you.

What I would do next

Contact the Pension Service again on 0800 731 0469.
Explain that your mum has sold her former home, is staying with you temporarily, and intends to purchase and occupy a replacement bungalow within six months.
Explain that you hold Lasting Power of Attorney and ask them to record the full circumstances.
Ask them to explain exactly why they believe her Pension Credit will stop, distinguishing between her temporary living arrangements and the proceeds of the sale.
If they decide to stop or reduce her benefit, ask for the decision in writing and seek specialist welfare-benefits advice before accepting that the decision is correct.

You can also get help from Citizens Advice or Age UK . The official DWP Pension Credit guidance is particularly relevant to the property-sale question.

Could I ask you two important questions?

I can give you a much more specific answer if you can clarify these two things.

1. What has happened to the money from the house sale?

A. It is sitting in your mum's bank account, waiting to buy the bungalow.
B. Most of it has already been used to purchase another property.
C. Some other arrangement.

2. How much was the property sale proceeds, approximately, after paying off any mortgage and sale costs?

For example, under £10,000, £10,000–£50,000, or over £50,000.

These details matter because the capital rules may explain the DWP's answer. I would not assume your mum has to lose her Pension Credit simply because she is living with you temporarily.