On your advice we've decided to continue with the paper application. However, we're concerned by the fact that in section 7.1 we are asked directly if either I or my sponsor are recipients of benefits listed in section 21.D which my sponsor is. Ticking the Yes box directs us to move on to section 7.B which completely jumps the section of the application where we are able to list his savings as the finances we are relying on for the application.
Section 7.1 is for people who are exempt from having to meet the financial requirement.
If your sponsor is in receipt of any of the listed benefits, you do NOT have to meet the £18,600 income or £62,500 cash savings requirement. Instead, you just need to show you have 'adequate maintenance' to support yourselves for the length of the visa.
Adequate maintenance is defined has having at least the amount that a UK couple would receive in income support from the government left over each week after paying rent and council tax.
This figure for 2017/2018 is £114.85 per week.
So, say your rent and council tax combined is £150 per week, you need to show a total of £264.85 income per week to meet the requirement. If using cash savings, you need to have enough to last the 2.5 years of the FLR(M) visa, which is £34,430.50.
Do we just tick no in this instance and fill in Category D irregardless of my sponsor receiving PIP because we are not relying on it for our financial requirement?
It depends - if you meet the financial requirement using the £62,500 in savings and don't want to apply as being exempt, then you can fill out Category D.
If you want to use evidence of the sponsor receiving PIP, showing your savings that way instead of Cat D, you can tick yes and skip to 7B.