Pension Pot clarification

hughiemachrins

Good evening

I have searched other posts but I just need some clarification if possible. I have a small pension pot of around 8k. I plan to withdraw it and use it to pay off debts and clear my overdraft. I know I have to report this on my journal but don't know which section I should be clicking to do this. My bank balance may be above £6000 for a few minutes only. Am I likely to get any deductions from my UC/LCWRA payments? Thank you for any help that you can offer.

Kimi87

Paying off debts is not classed as deprivation of capital under UC, so you should be fine.

If it was me I would add a note under Payments, after you have both received and spent the money. Just to say what has happened.

Jimm_Alumni

Hello @hughiemachrins, using money to pay off a debt is not to be treated as deprivation of capital. I actually went ahead and double checked this and it is very clear in the regulations themselves.

The Universal Credit Regulations 2013 (legislation.gov.uk)

The Universal Credit Regulations 2013

Section 50

(2) A person is not to be treated as depriving themselves of capital if the person disposes of it for the purposes of -
(a) reducing or paying a debt owed by the person; or

(b) purchasing goods or services if the expenditure was reasonable in the circumstance of the person's case.

Hope this helps 😊

hughiemachrins

Thanks for the replies. I was getting some conflicting advice but it looks like I will be OK to go ahead as planned.