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Can Occ Pension be refused to maintain HB entitlement?
Posted on behalf of a colleague
Can someone turn down estranged late husband’s occupational pension in order to continue to receive full housing benefit?
Cl is 72 y/o, single and on G PC. She separated from her husband 22 years ago. They never divorced, had 1 daughter. He sustained a brain injury and could not deal with his day to day living. So his sisters and estranged wife dealt with everything. He died 2 months ago.
The estranged wife is now the beneficiary of his small pension. Approx £8 per week. This has caused a reduction in HB of 70p per week. Taken away her GPC which means she has to pay for dental & opticians (she is undergoing extensive dental treatment at the moment and has to have frequent eye tests. This is even more of a concern for her than the HB)..
She phoned PC and asked if she does not take the pension can she stay in GPC and they said No because your “ entitlement “ still stands. I assume it’s the same rule as “deprivation of capital “ to obtain benefits? Are there any exclusions ?
[ Edited: 27 Nov 2018 at 10:53 pm by SocialJustice ]Good question and one that I don’t know the answer to I’m afraid.
Might be an idea to enquire with either:
The Pensions Advisory Service
http://www.pensionsadvisoryservice.org.uk/
Telephone 0300 123 1047
Or
Pension Wise
http://www.pensionwise.gov.uk
Telephone 0800 138 3944
Be good if you do find out if you could let us know the outcome.
Sounds like a small pension pot. She might be able to take it all as a lump sum (trivial commutation). The capital value would be taken into account for Pension Credit purposes which may or may not affect payment of guarantee credit.
Thank you for your reply, Paul.
I will post the outcome.
[ Edited: 28 Nov 2018 at 10:17 am by SocialJustice ]Thank you Mick
Have I read the question correctly? Your client wants to give up an £8 per week pension to avoid a 70p reduction in HB?
I daresay you have already thought of this, but just because you don’t qualify for GPC doesn’t mean you can’t get help with health costs. And if this is a borderline case where £8 makes the difference between GPC and no GPC, it seems likely that they would get at least an HC3, and probably an HC2.
On the question of notional income, I believe this is a common rule for all income related benefits - you can’t refuse income and claim benefits because you’ve refused the income, you are still deemed to receive the income. I can’t tell you what the regulation is in GPC, but the government’s guide confirms this:-
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/687298/pension-credit-detailed-guide-pc10s.pdf
Thank you, Timothy. Yes, our default is the low income scheme if she has to take the pension.
Also, she just does not want his pension as they were estranged, but is being penalised.
Admittedly, it seems reasonable to take a 70p cut in favour of an increase of £8 /w.
[ Edited: 28 Nov 2018 at 12:44 pm by SocialJustice ]