Adviser > Technical Central > Information & guidance > Acts, Bills and Budgets > 2009 Budget - Pension Credit – Capital Disregard
2009 Budget - Pension Credit – Capital Disregard
The capital disregard in Pension Credit, and pensioner-related Housing and Council Tax Benefit, is to be increased from £6,000 to £10,000 in November 2009.
Our view
The amount of capital disregard has been £6,000 for several years. The increase will improve the amount of Pension Credit available to eligible pensioners and is a welcome change.
What the Budget says
Pension Credit is the state benefit that aims to ensure pensioners have at least a minimum amount of income in retirement.
The amount of Pension Credit is affected by the amount of income the pensioner already has. Amounts of capital savings under £6,000 are not taken into account when calculating the amount of existing income. From November 2009, the amount of this 'capital disregard' will be increased to £10,000.
The information provided is based on our current understanding of the Budget 2009 and associated documents and may be subject to alteration as a result of changes in legislation or practice.
