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Original poster

Financial assistance for pensioner parent

53 replies

PervyMuskrat · 06/10/2023 20:05

My Mum recently died and so we’ve been getting my Dad’s budget sorted now that there’s just his state pension coming in. He could manage on that (just about) if he didn’t have a mortgage still to pay (he is early 70s and has another 3.5 years left on the mortgage) so he is short about £500 per month.

I’ve tried applying for pension credit for him but at £244 income per week, he is over the minimum. There’s no possibility of downsizing (it’s a small house, he’s lived there 50 years, there’s family on the doorstep and the house needs a lot of work). He was also my mum’s carer for a long while and is grieving so the house is also very important symbolically to him.

I am lucky enough to earn enough to pay his mortgage as well as mine at present but it does put additional financial pressure on me and if I lose my job (might be a possibility in the next 12 months), he’s screwed.

Are there any other benefits he could get? He’s physically capable of looking after himself in spite of limited mobility so attendance allowance isn’t applicable.

TIA

OP posts:
Alphabet1spaghetti2 · 06/10/2023 20:20

Don’t rule out being eligible for attendance allowance. Speak to age concern about filling it out, if he has limited mobility and needs family/others to help then he may well be eligible. Plus it is a gateway to other benefits.
dies he need to have family assistance getting shopping? Or use a taxi as mobility issues prevent him from walking/driving/using a bus? Maybe he needs help with cleaning and cooking etc. Help doesn’t just mean physical help from others, but does also include help from aids such as using and paying for glasses/hearing aids/walking stick/zimmer frame/stairlift etc etc.
Age concern are brilliant at knowing how to fill in these forms. The criteria for eligibility isn’t as strict as say needing to have daily carers to help hoisting in order to qualify. It’s more a points get you over the line for eligibility system, and it’s thing that you may not even consider qualify which get you those points.

my point is apply, and ask for age concern to help fill in the form. If you dont, he definitely won’t get it. Good luck.

edited for a massive typo. Sorry.

ruby1957 · 06/10/2023 20:21

If he receives £244 per week and he is in his 70s he obviously has a top-up via SERPs or similar to boost it from the basic pension (£156-ish per week) so he is above the pension credit level and not entitled to that help.

He can easily live on the £244 (I can live on less) if it was not for the mortgage.

Can he ask for a mortgage holiday or switch to interest only for a short while so he has time to come up with a solution to the shortfall in this difficult time. Is there any short term benefit - widows/widowers bereavement allowance to help.

Does he have savings, shares he can sell?

Original poster
PervyMuskrat · 06/10/2023 20:43

Age Concern is a good call, thanks. He has a blue badge for mobility, my friend cleans for him and I have power of attorney for all financial matters so that’s something to look into.

He has no other means of generating income to cover the shortfall. No savings, no investments, nothing of value in the house. He has a car worth less than £600 but it’s his only means of transport and affords him some measure of independence. The mortgage is on a good rate (1.79%) so it’s the best possible deal right now.

OP posts:
Flopsythebunny · 06/10/2023 21:07

Sounds to me like he would qualify for attendance allowance

ItsReallyOnlyMe · 06/10/2023 21:17

Have you looked into Equity Release ? It might be worth considering for this case.

Babyroobs · 06/10/2023 21:21

Alphabet1spaghetti2 · 06/10/2023 20:20

Don’t rule out being eligible for attendance allowance. Speak to age concern about filling it out, if he has limited mobility and needs family/others to help then he may well be eligible. Plus it is a gateway to other benefits.
dies he need to have family assistance getting shopping? Or use a taxi as mobility issues prevent him from walking/driving/using a bus? Maybe he needs help with cleaning and cooking etc. Help doesn’t just mean physical help from others, but does also include help from aids such as using and paying for glasses/hearing aids/walking stick/zimmer frame/stairlift etc etc.
Age concern are brilliant at knowing how to fill in these forms. The criteria for eligibility isn’t as strict as say needing to have daily carers to help hoisting in order to qualify. It’s more a points get you over the line for eligibility system, and it’s thing that you may not even consider qualify which get you those points.

my point is apply, and ask for age concern to help fill in the form. If you dont, he definitely won’t get it. Good luck.

edited for a massive typo. Sorry.

Edited

Attendance allowance does not consider whether someone can cook . clean or shop. there is nowhere on an Attendance Allowance form where these questions are asked. it is purely about difficulties with personal care- washing, dressing, moving around the house, medications.

Wolvesart · 06/10/2023 21:27

ItsReallyOnlyMe · 06/10/2023 21:17

Have you looked into Equity Release ? It might be worth considering for this case.

That just creates more debt.

Original poster
PervyMuskrat · 06/10/2023 21:29

Absolutely not to equity release. It’s a massive scam as far as I’m concerned.

If it comes to it, I’d rather add his mortgage value to mine, pay his mortgage off and ensure he has the security of his home for as long as he’s able to live there independently. At the minute it makes sense for me to send the money over to him each month as we’re not going to get a better deal on the mortgage.

OP posts:
Babyroobs · 06/10/2023 21:30

The Pension credit application form does ask about whether they want help with housing costs including mortgage payments so I think help can be given that way but I think may just be support with mortgage interest that they help towards but I think it should be part of the pension credit calculation.

Babyroobs · 06/10/2023 21:30

Has he informed the council and applied for single occupancy discount ( assuming he is now living alone ) ?

Original poster
PervyMuskrat · 06/10/2023 21:32

Thanks for the suggestion btw. Apologies if I sound blunt, I’m just exhausted from constant paperwork. I have no siblings to help, and I’m also grieving for my lovely mum

OP posts:
Babyroobs · 06/10/2023 21:32

PervyMuskrat · 06/10/2023 21:29

Absolutely not to equity release. It’s a massive scam as far as I’m concerned.

If it comes to it, I’d rather add his mortgage value to mine, pay his mortgage off and ensure he has the security of his home for as long as he’s able to live there independently. At the minute it makes sense for me to send the money over to him each month as we’re not going to get a better deal on the mortgage.

If you do this just make sure it is clear legally that you own part of the house in case the house needs to be sold at a later date to cover care costs.

Babyroobs · 06/10/2023 21:33

PervyMuskrat · 06/10/2023 21:32

Thanks for the suggestion btw. Apologies if I sound blunt, I’m just exhausted from constant paperwork. I have no siblings to help, and I’m also grieving for my lovely mum

I can imagine, sorry for your loss.

PermanentTemporary · 06/10/2023 21:34

Are there two bedrooms - could he rent out a room? I know it's not ideal but an inexpensive room might be appreciated.

Original poster
PervyMuskrat · 06/10/2023 21:34

Yes I’ve applied for single person discount for him (did it once on paper which has been lost by the council and now again this week online). I’ve gone through his budget and the only thing we can tweak now is his broadband, which we’re hoping to get done this weekend (as BT are charging him extortionate amounts).

OP posts:
Babyroobs · 06/10/2023 21:37

PervyMuskrat · 06/10/2023 21:34

Yes I’ve applied for single person discount for him (did it once on paper which has been lost by the council and now again this week online). I’ve gone through his budget and the only thing we can tweak now is his broadband, which we’re hoping to get done this weekend (as BT are charging him extortionate amounts).

As well as the single occupancy discount, has he also applied for council tax support ? Use the Age Uk calculator online to see if he would qualify for some council tax support as well as the 25% single occupancy discount. On those pension figures i think he would be likely to qualify for more reduction of council tax on top of the 25%.

Tulipvase · 06/10/2023 21:38

Possibly not the point but was your mum younger and working? I’m surprised that someone has a mortgage in their early 70s that they are unable to service.

I would try talking to age concern to see if they can offer any advice.

Sorry for the loss of your mum.

My dad was lucky that they were mortgage free when my mum died and he had a pretty good pension and state pension. But he still really noticed the loss of my mums income. CT deduction is only 25% and food and energy bills certainly don’t halve.

Original poster
PervyMuskrat · 06/10/2023 21:40

No to renting out a room. The house needs too much work and he’s a solitary person. Having someone else there all the time would be too stressful for him - it’s just been him and my mum for nearly 30 years. He tolerates me there overnight occasionally!

OP posts:
endlesslystandingonlego · 06/10/2023 21:43

Apply for council tax support from your local authority, on the income he has he should get something, (as long as he has less than 16k savings).

LegendsBeyond · 06/10/2023 21:44

PervyMuskrat · 06/10/2023 21:29

Absolutely not to equity release. It’s a massive scam as far as I’m concerned.

If it comes to it, I’d rather add his mortgage value to mine, pay his mortgage off and ensure he has the security of his home for as long as he’s able to live there independently. At the minute it makes sense for me to send the money over to him each month as we’re not going to get a better deal on the mortgage.

Equity release isn’t a scam. It may mean you lose some of your inheritance though, if that’s the concern.

Soontobe60 · 06/10/2023 21:44

Actually, in his circumstances equity release may be a good idea. If he has 3 years left on his mortgage at £500 a month, that’s £18k maximum. If he raised £20k through equity release, he can pay off his mortgage straight away and stay in the house. The debt will be repaid after he passes away or goes into a care home. https://www.moneysavingexpert.com/mortgages/equity-release/

Original poster
PervyMuskrat · 06/10/2023 21:45

Council tax support, good call. Mum got it so I’ll apply for him too.

Mum had been on disability benefits since I was a kid and was receiving higher rate attendance allowance which meant they were doing ok with two pension incomes. The reason for the mortgage is long and complicated but essentially involves bankruptcy decades ago and then a massive stroke which meant he couldn’t work for 18 months. No idea why the mortgage company allowed him to extend the term into his mid 70s.

OP posts:
Chewbecca · 06/10/2023 21:50

His circumstances are potentially one of the rare instances Equity Release might be a good idea IMO. It's suitable for people who really don't want to or can't downsize but can't actually afford to stay. I wouldn't borrow any more than needed.

Tulipvase · 06/10/2023 21:51

PervyMuskrat · 06/10/2023 21:45

Council tax support, good call. Mum got it so I’ll apply for him too.

Mum had been on disability benefits since I was a kid and was receiving higher rate attendance allowance which meant they were doing ok with two pension incomes. The reason for the mortgage is long and complicated but essentially involves bankruptcy decades ago and then a massive stroke which meant he couldn’t work for 18 months. No idea why the mortgage company allowed him to extend the term into his mid 70s.

I wonder is it’s worth looking to see if the mortgage was sound? As in, was good practice met?

That’s awfully written, apologies.

I assume there is no way you could take out a loan to pay the mortgage off?

Original poster
PervyMuskrat · 06/10/2023 21:57

Still a hard no to equity release. He owes about £16k on the mortgage, it doesn’t make sense to effectively borrow against the value of the house at a much higher rate.

It’s not about protecting inheritance, it’s about him knowing that once the mortgage is paid off, no one else has a claim to it. It’s very much psychological based on aforementioned bankruptcy and serious illness when it was touch and go whether they could keep the house.

As I’ve said, I’m willing to pay his mortgage as long as I’m able to (and hopefully my job will be secure next year), I just want to see what additional help is available to him.

OP posts: