Has anyone come across this situation before…..?

I have seen a client this morning who has recently been diagnosed with cancer. I am putting in a claim for DLA under special rules.

I was going to put in a claim for pension credit as Cl would be eligible. Cl then showed me bank statements which showed a payment of £480 per month going in then going out. Cl advised she took out a loan for £23000 a few years ago for her daughter to pay off her daughter’s debts. Her daughter pays her mother £480 every month to cover the loan going out.

Presumably the £480 income will be classed as income for pension credit purposes. Has anyone come across this situation before and asked the DM to use discretion or managed to get the amount disregarded? Unfortunately there is nothing to say that the loan taken out was for the daughters debts.

Thanks

why doesn’t the daughter just make the payments directly?

Have suggested that as an option, Cl has gone to the bank to see if this can be done. However, I’ve known some banks be strict and say that the direct debit has to come out of the account where loan was paid into. Hopefully the bank will allow her to do so but need to cover all possibilities.

For people under pension credit age, all income is taken into account for IS, income-based JSA and income-related ESA unless it is specifically disregarded.  However for people over pension credit age income is taken into account for PC, only if it is specified as income under s15 State Pension Credit Act or Reg. 15 State Pension Credit Regulations.  If it is not specified, it is ignored and does not affect the claimant’s benefit (see p. 940-941, CPAG handbook).  As the payments you describe, do not appear to be specified in the regulation even as miscellaneous income, I can only assume it is ignored as income…(any other opinions on this one)?

However, your client should try to obtain evidence of what the payments are for.