deprivation of capital

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  • #20261
    david kearney
    Participant

    think i know the answer to this but here goes anyway.

    single pensioner iro guarantee credit moves from owner occupied to rented property. The previous property, which was owned in her sole name, is signed over to a relative, and housing and council tax benefit is claimed at the new property. We are notifying pension service of the change, question is, wouild deprivation of capital be an issue
    e for them for somebody currently in recipt of gc.

    #2544
    Stalbansbenefits
    Participant

    A recent e-mail I received from the ‘External Partnership Liaison Manager’ of the Pension Service stated…

    ‘Capital from sale of property – If a customer sells home due to moving to
    Res Care we reassess claim and end AIP. It is less clear what should happen if the customer sells property and moves into rented accommodation. Under this scenario the customer has high capital but the LA pay HB/CTB if customer has GC and an AIP. This issue is now with our legislation team for clarification or confirmation as to whether this is a “loophole”‘.

    Not quite the same scenario as you describe, but my thoughts are it is the pretty much the same principal. Once the AIP ends the Pension Service will look at issues of capital and deprivation, but until then full HB/CTB!

    #2545
    david kearney
    Participant

    thanks for that, the pension service are paying at the new address and don’t seem that interested in any capital issues. We’ve sent copies of the documentation to the pension service. In the meantime we’ll continue paying, its not my money!

    #2546
    Anonymous
    Guest

    [quote:00bc4f8d8f=”Stalbansbenefits”]A recent e-mail I received from the ‘External Partnership Liaison Manager’ of the Pension Service stated…

    ‘Capital from sale of property – If a customer sells home due to moving to
    Res Care we reassess claim and end AIP. It is less clear what should happen if the customer sells property and moves into rented accommodation. Under this scenario the customer has high capital but the LA pay HB/CTB if customer has GC and an AIP. This issue is now with our legislation team for clarification or confirmation as to whether this is a “loophole”‘.

    Not quite the same scenario as you describe, but my thoughts are it is the pretty much the same principal. Once the AIP ends the Pension Service will look at issues of capital and deprivation, but until then full HB/CTB![/quote:00bc4f8d8f]

    Does anyone know if this loophole has been addressed yet? In out LA we are finding more and more of these cases, where pensioners are selling their homes and moving into rented accomodation but despite them having high capital the Pension Service will not review the cases until the end of the AIP’s. Very frustrating as we know they have the money but still have to pay their HB/CTB!

    Thanks.

    #2547
    Anonymous
    Guest

    Not our problem Matthew…think votes May 2005

    #2548
    Anonymous
    Guest

    You not a tax payer then? We all pay for it. We’re finding more and more cases where pensioners are selling up and the current law allows the capital to be disregarded and them to receive HB and CTB. The new rules also will allow them to gradually dispose of it too, so by the time their AIP’s end they’ll have been able to give it all to their family and still receive benefit. I know for most people it falls over the borders into the ‘somebody else’s problem’ zone, but I do hope it is addressed soon.

    I know the law allows it, but as people supposed to be protecting the public purse and being used to doing so it does grate somewhat!

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