Q I have been receiving Savings Credit and some benefit to help with my council tax. Because I will soon have underlying entitlement to Carer's Allowance, I am due to have Guarantee Credit next month as well. I have just received an unexpected inheritance of £20,000 and the council has told me I must now pay full council tax. How will my pension Credit be affected?

A The Pensions Service should have given you an Assessed Income Period of five to seven years. This means that your Pension Credit will be unaffected by increases in savings until the end of that period. Furthermore, as your windfall is being ignored for the time being, you will still qualify for Guarantee Credit. That means you will get a full council tax rebate.

Q We get full rebates on our rent and council tax and also receive Pension Credit. Our pensions go into the bank and, because we are careful and do not drink, smoke or have holidays, we have doubled our savings.

We have been assessed for Pension Credit until 2010, but a man from the council who came to see me said our increased savings could reduce our rebates. Is this fair? We are aged 81 and 88.

A Increases in capital may affect benefits, even if they are due to your own thrift. Your Assessed Income Period, however, means they will not affect your Pension Credit until 2010.

As long as you receive Guarantee Pension Credit, you will get full rebates. If you have only Savings Credit, however, increases in capital could reduce them.

Q I am a 68-year-old widower, living on a State Pension of £111.04 a week and a works pension of £14.04 a month. I do not have to pay rent or council tax, but am I entitled to anything else?

A Just because you receive rebates does not necessarily mean you cannot get Pension Credit. You are due £14.52 a week, but would then have to pay about £2 a week towards your rent and council tax.