Credit where credit's due

I am fully supportive of the government's quest to bring the country's deficit under control but there is still much work to be done if the UK's complex benefit system is to be made more consistent and less confusing. According to research among financial advisers, more than 50 per ce...

Full description

Saved in:
Bibliographic Details
Published in:Financial Adviser 2011-02
Main Author: Rozario, Andrea
Format: Article
Language:English
Subjects:
Cost control
Councils
Economic policy
Equity
Financial planners
Financial planning
Pensions
Single persons
Social security
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:I am fully supportive of the government's quest to bring the country's deficit under control but there is still much work to be done if the UK's complex benefit system is to be made more consistent and less confusing. According to research among financial advisers, more than 50 per cent of equity release customers are missing out on state benefits they are entitled to. In addition, 42 per cent do not realise their benefits could be affected by the decision to withdraw equity from their homes while 12 per cent think they might lose them completely. In terms of simplification, major issues remain on the level of assistance available for those needing help with funding care or long-term care. There is also confusion around the assessment of an individual's assets and income as this differs to the calculation used for other benefits such as pension credit, and regionally as local authorities have an element of discretion, it is inevitable people will be left unsure and possibly confused. The relationship between benefits and equity release is made more complex by the fact that even if taking out a plan reduces a customer's entitlements - which is actually unlikely - they may still be better off overall. But how do these income sources interact?
ISSN:0953-5276