Hi,

Someone who had been paid a £10,000 ex gratia payment from the Secretary of State died and all their capital passed to their widow. The widow subsequently made a claim for Pension Credit. Should the £10,000 that had been the ex gratia payment be ignored? Or would it only be ignored if it was the original recipient who had received it?

My view is probably not, but the wording in CPAG that relates to Sch 12 para 5 SPC regs descibes ex gratia payments made because the Japanese imprisoned or interned you, your partner or a deceased spouse/civil partner during World War, and this has put some doubt into my mind.

Has anybody encountered a similar situation? and how was the capital treated?

Thanks

Matt Finch
Leicester City Council
Welfare Rights

Fri 30-Apr-10 03:20 PM by ros.white

hi matt

i just looked at para 12 of schedule 5 to SPC regs - says that capital paid to deceased spouse in these circs should be ignored (sub para (c)) so your client should be ok.

here a link to schedule 5 to the SPC regs

cheers ros

Hi Matt

I know you mean sched 5 para 12. Going back to the CPAG comment. They go on to state that "Arguably the £10,000 disregard can be set against other capital if the payment itself has been sent." Afraid no practical experience of such a case.

Shaun

If there is no other captial does it matter? The limit for PC is £10,000.00? so would at worst be £1.00 per week tariff income?