Hello,
I hope someone can help me with this one my head is scrambled.
I have a 71 year old client who has no State Pension receives GPC and was renting a property claiming full Council Tax and Housing Benefit of £60 per week.
In 2005 my client decided to but a property (£73,000.00). The Pension Service has restricted his Housing Costs to £60.00 per week (as his rent would have been). The client has seen no change in this payment in almost 2 years.
If he was to receive the full amount he would be entitled to £93 per week housing costs. The client is having difficulty meeting the difference and may have to sell and move.
Obviously the rule is if you take out a new or increased loan during a relevant period (a time on PC, IS etc) the cost may be restricted.
Page 811 CPAG states it will be restricted if
- “you were in rented accommodation and getting Housing Benefit, to begin with you only get the amount of Housing Benefit you were entitled to plus any other housing costs ”
AdviserNet –
- “The interest on the loan which can be considered for pension credit purposes is initially restricted to the amount of housing benefit s/he was receiving plus any housing costs being met at the same time by pension credit.”
I would like to know what timescale is meant by “to begin with“ in CPAG and “initially” on AdvisorNet as to how long the restriction would be made.
I understand that a client is eligible to receive subsequent increases in the standard rate of interest.
However another issue is how does the Pension Service work out a subsequent increase in the rate of interest on a reduced Housing Cost payment? They are not looking at the loan amount.
Any help please???????
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