I have some good news for you in so far as your lump sum arrears of SDP will be disregarded indefinitely during the lifetime of your Pension Credit award . The following DWP issued document explains the treatment of arrears of Benefits. Note that the rules are different for ESA regarding arrears of Benefit.
"except in the case of State Pension Credit and Housing Benefit (Persons who have attained the qualifying age for state pension credit) where they are disregarded until the award comes to an end. In effect, the arrears are excluded from the calculation of the beneficiary’s capital for the lifetime of their award."
The above document is based on the State Pension Credit Regulations 2002 Schedule 5
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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