UC and pension fund — Scope | Disability forum
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UC and pension fund

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DaveSD1
DaveSD1 Community member Posts: 5 Listener
in Universal Credit (UC)
Hi, I'm currently in receipt of UC, housing benefit and council tax reduction. I'm a full time carer to my Son who receives PIP. 
I enquired this week about making a partial withdraw from a pension fund, how does this affect the above benefits? The figure i asked about was £2000, but was told the minimum release is £5000.
 I know they allow £6000 savings, i assume this would be classed as income. Any help or advice would be much appreciated. I just want to make sure this follows the rules. Thanks in advance for any replies.
       
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  • Jimm_Scope
    Jimm_Scope Posts: 2,828 Scope online community team
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    Hi @DaveSD1, welcome to the community :) Hope we can help you figure out how this might affect your benefits. I know it's a pain and stressful to figure out all the knock-on effects so let's try and reduce that worry.

    A lump-sum from your pension like that will count as savings, not income. Scope has an advice section on benefits and lump sum payments here Lump sum payments and benefits | Disability charity Scope UK

    You are correct that under £6000 in savings has no effect on your benefits at all, so as long as you have no other savings that total above £1000 that £5000 should not reduce your means-tested benefits.

    I hope this helps :) 
    They/Them, however they are no wrong pronouns with me so whatever you feel most comfortable with
    Online Community Specialist

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  • poppy123456
    poppy123456 Community member Posts: 54,833 Disability Gamechanger
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    DaveSD1 said:
    Hi, I'm currently in receipt of UC, housing benefit and council tax reduction. I'm a full time carer to my Son who receives PIP. 


    I just wanted to make you aware that as you're claiming UC you will only be claiming housing benefit, if you're living in either supported or temporary housing. If not then your rent will be included with your UC known as housing element. They are 2 completely different benefits.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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  • DaveSD1
    DaveSD1 Community member Posts: 5 Listener
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    Hi Jimm/poppy, Thanks for your replies and clearing up the question that it will count as savings and not income.
    Yes, the rent is included in the UC.
    Thanks again.  
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  • poppy123456
    poppy123456 Community member Posts: 54,833 Disability Gamechanger
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    It would be a weekly/monthly income from a pension that would affect your UC and reduce it £1 for £1. For this reason, it's pointless doing this.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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  • DaveSD1
    DaveSD1 Community member Posts: 5 Listener
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    Thankyou, i will withdraw the amount following the above advice from you both. Much appreciated.
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  • Jimm_Scope
    Jimm_Scope Posts: 2,828 Scope online community team
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    I will say one more thing @DaveSD1, you should still inform the DWP of receiving a lump-sum payment. Even if it does not take you over the threshold. 
    They/Them, however they are no wrong pronouns with me so whatever you feel most comfortable with
    Online Community Specialist

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  • DaveSD1
    DaveSD1 Community member Posts: 5 Listener
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    Ok Jimm, i shall inform them. 
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  • DaveSD1
    DaveSD1 Community member Posts: 5 Listener
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    DWP informed, thanks again to you both for advice regarding this matter.
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