can someone assist me

chiarieds

I agree, the only other thing I could find re: capital disregards is the value of any right to receive such a pension https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1182983/admh2.pdf  ADM Chap H2 para H2046 but that would be in the future, so for now I can only see this as being viewed as capital. So putting monies into a SIPP, thinking of a separate bank/building society account, ISA, etc. would all be seen as deprivation of capital.

brokebutsober

poppy123456 said:

brokebutsober said:

Hi, and thanks for the response.

Can i ask more in regards to the pension account. I have a nationwide account so could i open an account there and if so what would happen should i need to pull the money out in an emergency.

Im fine with waiting however long till you reach pension age but ideally i need to put the money somewhere so i can claim uc. It somehow feels so unfair after wprking and save all this time now i have to thro it away so i can stay afloat.

Unfortunately a nationwide bank account or any other savings accounts, including ISAs will still mean that you’re disregarded from claiming all means tested benefits if you have more than £16,000. 

Unfortunately you can’t just hide the money because DWP will eventually find out. 

A SIPP (self invested personal pension) are not bank accounts. See link https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/self-invested-personal-pensions

Do you qualify for New style ESA as per my advice above? 

Iv got back into work a year and half ago but you state 2 years so i assume it wont be. I feel like im being penalised for being so frugal about money. But i will have a loot at the sipps account

Jimm_Scope

poppy123456 said:

I’m afraid that’s not correct in this case. It’s my understanding that brokebutsober is saving for their first home so the disregard doesn’t apply. 

It only applies when you’ve sold the home you currently live in and waiting to purchase another. 

In such a case capital can be disregarded for at least 6 months, longer if a decision makers decides it’s reasonable to do so. 

See link and scroll to H2119 and H2120
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1182983/admh2.pdf

Thank you for the clarification Poppy, I was perhaps being too hopeful about how broad these exceptions might be. 

poppy123456

brokebutsober said:

poppy123456 said:

brokebutsober said:

Hi, and thanks for the response.

Can i ask more in regards to the pension account. I have a nationwide account so could i open an account there and if so what would happen should i need to pull the money out in an emergency.

Im fine with waiting however long till you reach pension age but ideally i need to put the money somewhere so i can claim uc. It somehow feels so unfair after wprking and save all this time now i have to thro it away so i can stay afloat.

Unfortunately a nationwide bank account or any other savings accounts, including ISAs will still mean that you’re disregarded from claiming all means tested benefits if you have more than £16,000. 

Unfortunately you can’t just hide the money because DWP will eventually find out. 

A SIPP (self invested personal pension) are not bank accounts. See link https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/self-invested-personal-pensions

Do you qualify for New style ESA as per my advice above? 

Iv got back into work a year and half ago but you state 2 years so i assume it wont be. I feel like im being penalised for being so frugal about money. But i will have a loot at the sipps account

Yes it’s the previous 2 tax years but there’s 2 conditions you must meet to qualify for payments. Although you haven’t worked for the full 2 years, this doesn’t mean you won’t qualify. The conditions are as follows.

• First contribution condition - in one of the last two complete tax years, you must have paid Class 1 or 2 contributions on relevant earnings at the lower earnings limit for at least 26 weeks. This means you must have worked for at least 26 weeks of the last two complete tax years; and
• Second contribution condition - in both of the last two complete tax years, you must have paid or been credited with, Class 1 or 2 contributions to the value of 50 times the lower earnings limit.

You can see the link here https://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based#:~:text=Contributory%20Employment%20and%20Support%20Allowance,style%20Employment%20and%20Support%20Allowance'.
although is says contributions based ESA, New style ESA has the same criteria. 

poppy123456

@Jimm_Scope no worries. Benefits are a minefield! 

brokebutsober

So i take it i either have to reduce my savings to meet universal credit or continue working with disability and save up for a house or flat. I cant open any pension because it may be deprivation of capital so i think the shared ownership is looking like the only option. I just dont want to get a shared ownership as that would involve paying rent and possible mortgage. The point of buying a place to live is so i dont pay rent. It would be easier if i could continue saving while on UC for a short while then get back working, it seems very hard to make this work.

I know someone who has bought a home but has had her parents pay it and she hasnt worked as much. She now has a home and on UC. Iv worked so hard for all this but seems like its not enough

poppy123456

That's pretty much all you can do i'm afraid. When you have savings, it means you have the funds to support yourself and not claim a means tested benefit. Benefits are usually the minimum anyway.

brokebutsober said:

I know someone who has bought a home but has had her parents pay it and she hasnt worked as much. She now has a home and on UC. Iv worked so hard for all this but seems like its not enough

The home you live in is disregarded from all means tested benefits.

There's always the ESA option, as i advised, you may qualify even though you've only worked for about the past 18 months. If you're entitled to SSP from your employer, you should consider claiming this first and the the ESA once that's ended. ESA can't be paid at the same time as SSP.

Do also look at the links i posted regarding PIP.

OutOfTheWorld99

A SIPP is not assessed when any means testing is done for applying for benefit purposes. I think it only is, if it can be shown that the claimant was piling money into that pension before making any claim for benefit or, withdrawing regular amounts from the pot exceeding the 6-16k limit.