HI everyone, i like to think i know quite a bit about Pension credit and boldy tell people about the AIP. However i have been referred a case of an 75 year old lady who has put her house on the market and moved to sheltered housing. Her previous award letter did state she was in an AIP till 2010, however her PC was cancelled with the reason that she moved home and has a property to sell and is not entitled. She is now trying to pay the mortgage on the property and pay her rent and CTB on the sheltered housing with her pension!!!!
Clearly she is in big arrears, but my understanding is PC have made a HUGE mistake but they are not backing down, ecpecially the lady took six months to come forward since the claim was cancelled. I have made a claim to HB to help her with her rent until her house is sold, but clearly PS have made a mistake and i have written to them but they believe change of address ends the AIP????????
Help please!!!!

What the hell is a 75 year old doing with a mortgage - was it one of those awful equity release schemes?

I dont know but she a small mortgage on the house which she has shown papers for (PS were paying the interest)
I have spoken to PS and they say they cancelled her PC becuase her house is now taken into as capital!
DUh!! the whole point of the capital is ignored until the AIP??? i have no idea how they are making descion and i think it is coming from Motherwell as this is the second case i am arguing in Glasgow for the tenant. But they truley believe that if she moves home then this change cancels her AIP therefore they can take the house into her income.

I imagine that they are thinking about one of two possibilities, both wrong.

An AIP can stop, inter alia, if:

the claimant no longer satisfies a condition of entitlement to SPC

or

a claimant who has no partner is provided with accommodation in a care
home or an independent hospital on a permanent basis.

Could they have confused Supported Housing with Residential Care?

The conditions of entitlement issue relates to age, residence, partner's circumstances and making a valid claim.

Again, DMs have been known to confuse entitlement and assessment. It may be that they have decided that the capital value of the house was such that the tariff income would extinguish the calculated amount of benefit.

They may also think that a change of circumstances forces a new calculation but the only CoC that can affect an AIP is the ending of it and that returns to the 2 circumstances above.

If neither apply then the AIP continues.

It does of course open up the passporting of HB & CTB so that even after the house is sold, your client will be able to hold the capital, receive the mortgage interest and get full HB and CTB.

If it had been a Savings Credit only case then the capital value of the house, even in an AIP, could, of course,have an effect.

I would have thought the value would be ignored anyways if its up for sale?

We had one exactly like this, they now have or had £160,000 in the bank after moving into rented sheltered then selling the previous bought house with PC GT and full HB & CTB continuing.

Well until 2009 anyways.

All was reported to PC who agreed no change due to the AIP.