Migration from tax credits to universal credit.

OverlyAnxious

Sorry to jump on this thread but I'm a bit confused regarding pensions and UC after reading this. A few months ago, while still on legacy ESA, I was advised that I could pay into a private pension without that affecting ESA and it wouldn't be counted as savings either. I can't access it as below pension age. Is that the same for UC now I'm migrating over? I haven't included the amount in the pension fund when declaring savings. Also don't think I was asked about paying into a pension at any point so far.

Long story short, I'm trapped in unsuitable accommodation so have more income than I can physically use currently. If I was ever able to move to more suitable accommodation, I would stop paying into the pension and use that excess to pay for things that would improve my quality of life. Hopefully I'm not doing anything wrong like that. I know it's a difficult subject on here and was in the situation of not having enough income myself before PIP.

poppy123456

https://forum.scope.org.uk/discussion/comment/892329#Comment_892329

You are allowed to pay money into a pension and the money in the pension pot is ignored for UC the same as it was for Income Related ESA.

The only thing I would advise to be aware of is that if you're putting large lump sums into a pension pot in order for you to continue to claim UC they may question that on the basis you're moving capital from one place to another, where you're unable to access that money.

OverlyAnxious

https://forum.scope.org.uk/discussion/comment/892334#Comment_892334

Thanks Poppy.

I must admit I've never felt comfortable with it, despite being advised that it was ok by more than one person. As I had no way to contact ESA to inform them of a savings increase every month or two, I was stuck between a rock & hard place at the time. Once I'm on UC I could update the savings online through the journal so that's no longer an issue. I'm not bothered about losing a small amount of income because of it. It was just the inaccessibility of legacy ESA that forced the decision.

It's currently set up as a monthly payment so it goes out while it's still income before it becomes capital. I wouldn't say it's a large amount but 'large' means different things to different people.

poppy123456

@OverlyAnxious no problem. The good thing is that you put money into a pension pot regularly each month. It’s not like you’re putting large amounts every few months or a few times a year. Paying into a pension is allowed so it shouldn’t affect your UC.