Are money gifts likely to cause a problem to a pensioner who may be getting benefits?

[Pagwatch]

Does that make sense?

If a pensioner is given a cheque or cash at what point is it likely to have an impact on any benefits?

They have a limit on savings and should declare regular income. If its not regular it would be a gift I suppose.

Can't see it being a problem unless it was thousands of pounds or it would send them over the limit for the amount of savings they are allowed if claiming pension credit and other benefits.

Regular payments may count as income.

You might do better buying your pensioner's shopping if you want to make a regular contribution to their welfare.
My parents do this for my nan, get a list from her, buy online and have it delivered to her house.

Thanks for the replies.

Yes, I did wonder if a regular payment would count as income WetAugust, thanks for confirming that is probably the case.

I already get shopping delivered. I wanted to organise an amount she can use for things like a new winter coat. I buy these things if she stays - we go shopping, she choses, I step in and pay at the till, she is surprised and says 'oh you shouldn't ....it works well

But she is visiting less and less and I can't easily go to her. And my problem is that she is very private about her money and won't discuss if/what state support she gets.

I would hate to send her money that triggered a problem for her. I wonder if there is a maximum gift amount that is standard iyswim?

She also now has a live in partner so that makes it harder to guess.

Yes, I did wonder if a regular payment would count as income WetAugust, thanks for confirming that is probably the case.

It is definately not the case - payments that are genuine gifts from an individual or charity (but not necessarily from a trust), whether regular or not, are not income for any benefit or tax related purpose.

I asked the DWP this and was told that regular gifts of any kind, including groceries shopping, could count as income. And could cause means-tested benefits like Income Support and income-based Incapacity Benefit/ESA to be reduced proportionately.

They didn't seem hugely sure of the rules tho ( quelle surprise on a DWP helpline) and suggested simply submitting a claim including all details "and we'll decide".

Not much help, I'm afraid.

Could really nice gift vouchers be the answer? They'd be one-offs each time, and presumably wouldn't count as cash assets that had to be declared?

I would do a 'regular gift' at irregular intervals if you can and vary the amount a bit if there is any doubt.

For example a bit one month then wait 3 months IYSWIM.

Nothing will affect her state pension or private pension payments. The most likely means tested benefit she may be getting is 'pension credit' if you want to look up the rules for that.

Oh and housing/council tax benefits.

They didn't seem hugely sure of the rules tho ( quelle surprise on a DWP helpline) and suggested simply submitting a claim including all details "and we'll decide".

They obviously weren't, and no that is no surprise. They make decisions according to rules contained in the "Decision Makers Guide". For instance for Income Support the relevant rules are contained in Chapter 28 of the guide, notably 28513 which is a bit difficult to quote out of context but basically says "Fully disregard any [regular charitable or voluntary payments] unless one of the exceptions ... apply. The exceptions relate to payments which are not genuine gifts or donations e.g. payments by someone with a relevant parental responsibility, payments from trade unions to striking workers etc.

Also note that 28418 rules out most income in kind, so paying for someone's shopping should NEVER be taken into account for Income Support even if it is in return for some service.

If you ask DWP the question "what do you want to know" the answer will always be "everything": the right question to ask is "what are DWP entitled to know", and the right answer will only come from a (good) benefits adviser or lawyer.

As a general note, I am not aware of any UK legislation that brings genuine gifts received by an individual within the definition of 'income': it is difficult to see how such a law could be equitable.

For pension credits the position is more clearly stated here.