Just returned from holiday so mind has gone blank. Can anyone help me please?
We have a tenant who was awarded HB back to 2005 as a result of Pension Credit being awarded. The HB was credited to the rent account and was subsequently refunded to them.
The LA visiting officer called to see them just after the money went into their bank account and unfortunately it has taken them just over £16k.
Is the money taken into account as capital which would mean HB stopping?

If the clmt is, and remains, in receipt of GUARANTEED Pension Credit, there is no effect on HB/CTB. This is irrespective of whether or not there is also entitlement to Savings Credit <HBR(PC age) 22>.

However, if the clmt is in receipt of Savings Credit only (i.e. no Guaranteed element), then the LA is REQUIRED to take into account capital if it rises over £16,000 <HBR(PC age) 27(8)>.

Hope this helps.

Also arrears of benefit are disregarded as capital for 52 weeks.

Would not expect HB to be affected - at least in the short term. The LA will have awarded benefit on the basis of assessed income and assessed capital figures provided by the Pension Service. HB cannot be revised until these assessments change.

Hi Derek,

Your post is not quite right - hope you don't take offense. If cap rises over £16,000, the LA MUST make it's own assessment of cap - irrespective of the AIF (reg quoted above). In this situation, the LA should not wait for a revised notification from the Pension Service.

Regards

Far from taking offence Kevin I'd value your opinion anytime (might not always agree though) and I know you are usually right. And reading reg 27 closely I think could be right again.

Interested in this one however because I have had detailed talks with a local LA a couple of months ago who told me they could not change capital without reference to pension service. The complication (they told me) was that where there was no assessed income period (as in my client's case) reg 27 did not apply.