Hi, my name is pensiongal! Will Universal Credit make deductions for a lump sum from my pension?

pensiongal
pensiongal Online Community Member Posts: 3 Listener
edited October 2024 in Universal Credit (UC)

Wonder if anyone knows? Got a really tiny private pension and I want to take about £1500 as a lump sum. Will universal credit add this to my meagre savings and ignore it for benefit purposes or will they swallow it all up and deduct it as they do with my retirement pension? Thanks in advance guys😊

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,042 Championing

    A lump sum from a pension for UC purposes is treated as capital and not income. If your capital is less than £6,000 after withdrawing that then it will not affect your UC. If you do withdraw that, you will still need to make sure you report the changes to UC.

  • pensiongal
    pensiongal Online Community Member Posts: 3 Listener

    Thank you. I yhought that but after being told by UC I could claim couldn't claim and them not knowing their own rules that changed 5 years ago it is beginning to scare me silly! Thanks again

  • hawaii58
    hawaii58 Online Community Member Posts: 5 Listener

    we did this a few times, we got a adviser who told us to draw out six thousand over i think it was 5 years, which we did, be carefull as u.c. Started stoping us about £500 a month, after getting in touch with an adviser in DWP they had to pay us it all back it was stopped for 8 months. We kept arguing with them but they wouldnt have it.

    We Are on our last leg of being on universal credit and cannot wait to come off as im now 66 and getting my state pension and my husband is 66 on 25th January so cant wait.

    Now ive just applied for pension credit, we are entitled to career part and the severe disability part but funny thing is me and my husband are both on pip and have a underlined entitlement just waiting to see how much we will get.

Categories