UC and pension fund

DaveSD1

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.
       

Jimm_Scope

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  

poppy123456

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.

DaveSD1

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.  

poppy123456

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.

DaveSD1

Thankyou, i will withdraw the amount following the above advice from you both. Much appreciated.

Jimm_Scope

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. 

DaveSD1

Ok Jimm, i shall inform them. 

DaveSD1

DWP informed, thanks again to you both for advice regarding this matter.