Good afternoon everyone

Please could I have some advice?

I recently visited a resident (they are a couple both getting AA aged 81 applicable amount £363.15) who had been receiving PGC up until 24/10/2009 their weekly income was £142.88 SRP (his) £57.55 SRP (hers) and they had savings of £28348.00 tariff income of £45.00. They also had a private pension of £108.36 pw. Qualifying for pension savings credit/ PGC and full rent and council tax.

However earlier in 2009 it appears that he was diagnosed as having asbestosis. He applied for and received Industrial injuries benefit of £28.72 per week from 24/10/2009 which meant that their entitlement to PGC and passported HB CTB was lost. I don't know who advised them to apply for IIB without a benefit check but that award of £28.72 has cost them any help towards rent and council tax. Unless I am missing something and I hope I am.

Should I advise him to cancel his claim for IIB? If he did this would he have to repay the IIB he has alraedy received and would he be treated as depriving himself of benefit?

The capital limit for HB/CTB is 16k. (Didn't matter while they were on PCGC) And yes, cancelling a claim for another benefit (or disposing of your savings) simply so that you can now get HB/CTB is classed as deprivation and the income would still be included for HB/CTB purposes. I expect the PC rules are similar in regard to deprivation of income.

Thanks TrishC.
I do understand about capital rules PGC etc it just seems very harsh that the award of IIB pushed their income over their applicable amount. Surely it can't have be the intention that the award of one benefit should lead to financial hardship and loss of another (HB and CTB?) I just wondered if the Pension Service might be likely to accept an argument around these lines?

Oh I totally agree, but them that makes the rules dont live in the same world as the rest of us. Although anything is normally worth a try, the SPC guidance manual has similar notes about deprivation that HB/CTB does. Specifically that the reason for the deprivation is to get or increase SPC.
http://www.dwp.gov.uk/docs/ch85.pdf
(useful bit of kit this internet!)

Were they not in an extended AIP?

Hi Gareth

They were in an indefinite AIP. But I belive that receipt of benefits is a notifiable change? Certainly PC were made aware of it and PGC ended although savings credit still awarded.