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Pension Credit and a lump sum state retirement pension
Hi all
I have a client who deferred his pension and received a lump sum state retirement pension (about £30k) instead of an increased income.
I looked at CPAG and it states that this capital is ignored indefinitely for PC. The footnote refers to the State Pension Credit Regulations sch5 para 23A etc. However, I cannot find this part of the regs on the internet.
I rang PC and they are taking into account the lump sum as capital and applied a tariff income from it. When I asked if it should be disregarded I was advised not because he chose to receive the lump sum.
Is this correct and does anyone have a link to the relevant regulations? I would appreciate any help.
I think you may be looking at the original version of the regulations, or another earlier version: you can find the most up to date version here:
http://www.legislation.gov.uk/uksi/2002/1792/pdfs/uksi_20021792_300617_en.pdf
which does include the bit you’re looking for
The Housing Benefit (Persons who have Attained the Qualifying Age for State Pension Credit) Regulations 2006 (Schedule 6, paras 26A and 26AA here) make clear that any lump sum payment received from deferring a State Pension are ignored indefinitely as capital, as long as the claimant chooses the lump sum option, rather than an increase to their weekly entitlement.
http://www.legislation.gov.uk/uksi/2006/214/pdfs/uksi_20060214_300916_en.pdf
eta: SNAP, I agree with Giles obvs.
Thank you so much, I’ll get this off to them.
Sorry, I only just read this properly and saw you’re talking about PC and not HB. My mistake.