Can someone please expain how this operates in relation to their being no upper limit in the savings threshold? Does this mean the client will get full housing benefit inmaterial to how much capital they have?

Yes.

It's also easy to find situations where small increases in income (or sometimes capital where the tariff income affects it) can drop the client off GC and have drastic effects on HB/CTB.

Where capital is over the HB limit then there is an instant 100% loss of HB/CTB and where the client moves onto calculated HB/CTB then the effects can still be severe.

This is why it's important to clients to do some pre-retirment planning. For example many people have to decide upon retirement between options for their pension which include more capital and lower income and vice-versa. If by taking £30 a week less income and £5,000 more capital, the client can become entitled to GC with a consequent entitlement to £90 a week HB/CTB, that may effect their decision.

... and now add in the effects of yesterdays budget announcements about deferring pensions on retirement and the way in which that affects other benefits and overall income!

We've started building this into our software and, although the regulatory detail isn't available at the moment, if our assumptions are correct about which benefits treat RP as notional income and which don't, the effects clearly demonstrate the importance of accurate advice before decision making. e.g. if we are correct in our assumptions about treatment of deferred notional income for GC and SC then you can easily make yourself worse off in some circumstances.

Can someone assist please? How does this affect entitlement to CTB? My client (mentioned in earlier threads no.31)still wishes to proceed with equity release. How much can she get for herself without losing entitlement to CTB?
Reading the Regs it appears that if one is entitled to Guarantee element of PC then there is entitlement to maximum CTB, but from reading above advice when would capital attract notional income tariffs and affect CTB?
Many Thanks.

As you know, if your client obtains capital from which the tariff income isn't high enough to take her off PC Guarantee, she's OK for maximum CTB - her capital isn't an issue and she's passported to the benefit by her PC(G), without financial enquiry.

But, if she get's enough capital to annul PC(G), then even if she still gets a bit of Savings Credit the LA will still have to do a full financial assessment for CTB. Then, if she's got more than £16,000 capital, it's no CTB.

Jim

Thank you.

If they had an assessed income period with thier origianl Pension Credit (Guarantee) award?

They do not need to report any changes until this period is up, so regardless of any extra income or capital they should still get full passport benefits including Council Tax.

Very true, Bill. Thanks for the reminder. CTB could on that basis remain payable for several years, along with PC(G).

Jim