Decisions on eligibility for social housing support are a matter solely for local authorities with reference to eligibility and need criteria set down in section 20 of the Housing (Miscellaneous Provisions) Act 2009 and the associated Social Housing Assessment Regulations.
The Regulations prescribe maximum net income limits for each local authority, in different bands according to the area concerned, with income being defined and assessed according to a standard Household Means Policy.
The Policy provides for a range of income disregards, and local authorities have scope to disregard once-off, temporary or short-term income and which is outside the regular pattern of a person’s annual income. It also provides savings are only relevant to the assessment in so far as they generate income for applicant households through dividends or interest. Should this pension lump sum generate an income by way of dividend or interest then it may be relevant to income assessment.