Pension Pot clarification
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
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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.
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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 😊
1 -
Thanks for the replies. I was getting some conflicting advice but it looks like I will be OK to go ahead as planned.
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