Pension Pot clarification

hughiemachrins
hughiemachrins Community member Posts: 80 Contributor

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.

Comments

  • Kimmy87
    Kimmy87 Community member Posts: 1,396 Trailblazing

    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_Scope
    Jimm_Scope Posts: 5,410 Scope Online Community Specialist

    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
    hughiemachrins Community member Posts: 80 Contributor

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