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This may or may not be the case.
PC tends to specify income taken into account and it was the case that equity release income was not in the list.
This was changed by The Social Security (Housing Benefit, Council Tax Benefit, State Pension Credit and Miscellaneous Amendments) Regulations 2004
Laid before Parliament September 2004
Coming into force
for the purposes of regulations 1, 2(10)(a)(iii) and (iv) and (b) and (22), 3(4), (10)(a)(iii) and (iv) and (b) and (22) and 7(1) to (4) and (6) 4th October 2004
for the purposes of regulation 8 6th October 2004
for all other purposes 4th April 2005
The relevant chunk says:
"Amendment of the State Pension Credit Regulations 2002
1.—(1) The State Pension Credit Regulations 2002( ) shall be amended in accordance with the following provisions of this regulation.
(2) In regulation 1(2) (interpretation), after the definition of “Eileen Trust” insert—
““equity release scheme” means a loan—
(a) made between a person (“the lender”) and the claimant;
(b) by means of which a sum of money is advanced by the lender to the claimant by way of payments at regular intervals; and
(c) which is secured on a dwelling in which the claimant owns an estate or interest and which he occupies as his home;”.
(3) At the end of regulation 15(5) (income for the purposes of the Act), add—
“(j) any payment made at regular intervals under an equity release scheme.”.
(4) At the end of regulation 16 (retirement pension income), add—
“(m) any payment made at regular intervals under an equity release scheme.”.
...."
The real ER experts are not sure whether the drafting catches the intent of the regulations (specifically they have doubts about the definition of equity release) but those intentions are clear.
What is not caught, we think, is capital which is drawn down *at the customers request* or which is paid irregularly.
What kind of scheme is it? Capital or income; drawdown or staged etc?
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