nav[aria-label="Primary Navigation"] { padding: 0; & ul { list-style: none; width: 100%; display: flex; flex-direction: row; justify-content: start; align-items: start; gap: 30px; padding: 0; & li { margin: 0; } & ul li { list-style: none; } } }

We want to hear from you: please tell us about your experience of the online community.

Hi, my name is dwoody69! Will a lump sum from pension affect my UC if I'm paying off debts?

dwoody69

I have just taken out a huge lump sum from my pension

Do I declare it to uc.

Part of my payment was non taxable do I declare this

I gave paid off lots of debt with thus money does this change anything.

Any help please

Find more posts tagged with

Comments

Rosie_Scope

Hi @dwoody69! I'm no expert on pensions I'm afraid, but I just wanted to pop in to say hello and welcome you to the community. I'll move your post over into our Universal Credit section. You've done nothing wrong by posting here, but if we move your post across hopefully more members with the right experience can find it and offer you some advice. Hope you'll find the community friendly and helpful 😊

poppy123456

A lump sum is treated as capital/savings when claiming UC. Yes, you need to declare it, all of what you received. Then they will very likely ask what you did with the money, which you will need to tell them.

Paying off debt is allowed when claiming UC BUT it does depend on what debt it was. For example, if you owed money to family or friends and you paid this back they may ask questions.