Will we lose Council Tax Benefit and other worries

[WorrierNOTwarrior]

Hello, and thanks in advance for any help and advice you can give us.

 

We are a couple claiming benefits. I get a small state pension, pension credit and my husband gets IB, so we get the full council tax benefit.

 

But from June this year I'm going to get a share in my ex-husband's work pension, around £410 a month I'm told. I want to know how that will affect my benefits and especially council tax relief.

 

I'm over sixty and on a state pension of only £36 a week, topped up by Pension Credit of £71 (which means we have our council tax paid). Also I do get the lower rate of mobility and care DLA (from August this year) but I know that isn't affected by other benefits - I say that for completeness.

 

I should say that, at first I claimed benefits as a couple, but after a while they stopped this and made us claim as separate people. I don't know why. But when my husband did then claim his IB separately we were in fact better off - before, it was not worth his while claiming it as they'd only deduct it as "income".

 

Anyway, my husband (aged 46) cannot work and is on Incapacity Benefit of around £94 a week. With these benefits we rarely make ends meet and I have to pay for extras like the car MOT with savings. (which are under £5000)

 

But when I get a share in my ex husband's occupational pension, I guess this will mean I'll lose all my pension credit, including council tax benefit, and also possibly my husband's Incapacity Benefit. But I don't know for certain.

 

What I've read online is so complicated that I don't know what to claim to achieve the best income. (Added to this of course I'm annoyed that when at last I'll have a bit of money coming in, I have to sacrifice it for the sake of the benefits. So we won't be any better off, probably worse.)

 

Can anybody tell us if he will lose his IB, and the council tax benefit? What would be the best combinations to apply for, and is there anything we are missing?

[ErikaPNP]

Without seeing a full breakdown of your complete finances, no-one here could advise you. that is why there are people trained at the Pension Service and the Council to calculate this. Additionally, I'm not sure posting a breakdown of your finances on a public internet page would be wise.

 

Your husband will NOT lose his Incapacity Benefit however, as Incapacity Benefit is not a means tested benefit. It is payable on circumstance, not income.

 

A good way to get an idea is to put your details into here to calculate it: Start Calculation (click on the blue link)

 

This will ask you to enter your financial details - it does not request any personal details such as name address or anything like that - only finances to perform a calculation of how much you may be entitled to. It is however only a guide.

[WorrierNOTwarrior]

Thanks for the link! That was very useful. I've been thinking about what you said - that we won't lose the IB because it's not means tested... I'm not sure that is correct, as at first when I had a small monthly allowance from my ex-husband that counted as income, my hubby - although entitled to IB - couldn't get any money.

 

We were also told, there was "no point" his claiming it as the DWP would only deduct it from MY benefits calculation in any case, and I'd get less.

 

So it does seem that - whether a joint claim as a couple or singly - my income is taken into account and if it's over the £198 limit we will lose out. But I'm still not sure.

[sallysas]

Do you get guaranteed pension credit? If so you will contine to receive full council tax benefit - that is all the council will be interested in.

 

Your income information is given to the council by the pension service so as long as they know what is going on you have no need to worry.

 

Not sure what kind of pension credit you are receiving - a lot of people are not sure about this. It is possible to get guaranteed and savings pension credit. To put your mind at rest call the pension service and ask them.

 

Hope this helps

[WorrierNOTwarrior]

Do you get guaranteed pension credit? If so you will contine to receive full council tax benefit - that is all the council will be interested in.

 

At the moment I DO get pension credit BUT that will disappear in June when this new occupational pension kicks in - hence my question.

 

Since I last wrote, I have read that the IB counts towards council tax benefit IF it's the long-term (over 52 weeks) type, which my husband does get, so that will be okay, but I still don't know if they will deduct HIS "income" (IB) from MY "income" and if both combined are over the £198 limit tell us he can no longer draw his benefit even though he's entitled to it. That is what happened to us before.

[ErikaPNP]

YEs, Incapacity benefit can be counted as income and can affect other benefits you can get, however, Incapacity Benefit in itself is not means tested - it is not payable dependant on income.

 

So yes, his IB could affect your entitlement to benefits but your income will not affect IB.

[wonderaloud]

Hello,

 

I see this was a while ago, but I'd be very grateful to know the outcome as my parents are in a similar position.

 

My parents receive pension credit, which is divided up between bills, to the tune of £51 per week. However, my mum will soon be receiving a small private pension which she has been looking forward to for a long time as they really struggle. However, it has dawned on us all that in fact, not only will they probably (?) lose the pension credit, but they may have to pay council tax and even the rates fixed for the bill payments may change (pension credit of £51 covers electricity, gas, water and mortgage interest rate). Is it possible that they may actually be worse off??

 

The cruel irony of all this is that my mum worked hard over the years and often had to bail my dad out, who is terrible with money. They currently have not very much, but she is relatively independent with her money (state pension). Now, it seems, she is going to be bailing him out once again.

 

Any information/advice gratefully received