I have a client who is due to retire later this year. He will receive a pension which has a lump sum component..

He said he wants to use £10k of this to buy a cheap caravan, as they (+ wife) will not be able to afford holidays abroad once he retires..

I did a quick bencal yesterday afternoon... on his occu pension plus the capital, he would not be entitled to HB.. Howver if I reduce his capital by the £10k he wants to use to buy this caravan, then he would be entitled to full HB..

Would HB however, view buying a caravan for future holidays as him depriving himself of capital in order to claim HB...?

One another point, he has a lot of debt, would they view paying off the debts as deprivation of capital as well..?

Sorry, I seem to have made a mistake..

I have re-inputted his capital and occu pension and he will be entitled to full HB.. Dont know where I wnet wrong yesterday.. So if he is entiteld to full HB, then him using his capital wont have any consequences..

Thanks for reading anyhoo.. x