Savings & UC

winky33

hi, I have £500 in bank and just bn awarded pip and due £2250 back dated money, and just found out I had a private pension worth £21500, which I am drawing out 25% which is approx £5400. So I will have approx £8150, will I have to inform universal cred as it is over £6000 which is their limit?

Rosie_Scope

Hi @winky33, welcome to the community 😊

Your PIP back pay wont count as savings for a year after receiving it, so that shouldn't affect your Universal Credit for a while.

Your pension can affect your benefits if you take it out in lump sums, so you will need to notify them if your savings are likely to go above £6000. There's a little bit about this on the Scope website here:

Lump sum payments and benefits | Disability charity Scope UK

Your benefits won't stop when you reach £6000, but your payments will be reduced by £4.35 for every £250 you have above £6,000. Your benefits would only stop if you reached £16,000 in capital.

winky33

Thankyou for yr help

winky33

Im only takening out 25% and leaveing the rest untill i pass away

poppy123456

If you take a lump sum from your pension you must report the changes to UC, even if your capital is still under £6,000.