Originally posted @ 8:00 am, Fri 30th Oct 2009
A Pension Credit change kicks in on Monday, helping pensioners with modest savings.
"I'm pleased Labour is able to do more to help older people who've built up modest savings."
When Alistair Darling announced the change in April, he said over half a million pensioners on modest incomes, will gain by an average of £4 per week; between 700 and 900 people in South Derbyshire.
To help pensioner households with savings of less than £10,000, Alistair Darling announced in April's budget that it was time to increase the capital disregard on Pension Credit from £6,000 to £10,000 from November 2009.
The move will benefit over half a million pensioners on modest incomes, who will gain by an average of £4 per week. (Notes follow)
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Capital changes for people who have reached qualifying age for State Pension Credit from 2 November 2009
With effect from 2nd November 2009 the capital threshold is being increased from £6,000 to £10,000 for customers who have reached the qualifying age for State Pension Credit.
This means that £10,000 will be ignored in the calculation of Housing Benefit and Council Tax Benefit.
The effect of this change is to reduce the tariff income included in the calculation of entitlements to benefits.
Existing claims for Housing Benefit and Council Tax Benefit should be automatically updated to reflect this change and people should be notified of the change to their benefit.
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You can still claim benefits from the council if you have savings or investments (we call this money capital) as long as you don't have more than £16,000.
If you have a partner, your joint capital must be less than £16,000 to claim, unless you are only claiming Second Adult Rebate.
If your capital is more than £6,000* but less than £16,000, your benefits may be affected.
£1 is added to your weekly income figure for each £250 or part of £250 you have over £6,000* (£500 or thereof, aged 60 years or over). Any amount we have added in this way is shown on your letter.
If you have less than £6,000* savings or you are getting Income Support or Income Based Job Seekers Allowance any savings are ignored when your benefits are calculated.
* From 2 November 2009, the lower capital level is raised from £6,000 to £10,000 for pension age claimants.
Note, changes are also introduced to potentially help those receiving child benefit.
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