I wonder if someone could advise on how P.Credit deals with diminishing capital.

Situation is as follows; Cl is in her 90s and was admitted to res. care in Sept 05, self funding with about £42k in savings. Applied for PC in March 06 with a request to back date to Sept.05.
In March 06 capital was down to £22k (£20k having been spent on care fees). The claim was made by telephone and the reduction in capital over the period of the back dating was pointed out to the P.Service and evidence of the diminishing capital(A building society pass book covering the whole period) was sent to them.

P. service calculated tariff income on £42k for the whole period even though they had clear documentary evidence that the capital had fallen ot £22k by March 06 and only superceded the decision from June 06.
Can anyone advise as to whether, in the circs. above,it is within the regs for the Pension Service/DWP to assume a certain level of capital for a fixed period, regardless of whether the actual capital has in fact reduced.If it isn't then the cl. has probably been underpaid.

thanks, pc

They didn't do something dumb like put her into an AIP did they?