Pension lump sum

lainy1elaine

hi a quick question I receive uc I have a pension of 5400 I would like to take this as a lump sum and pay a credit card bill of 2200 so I won’t have more than 6000 in savings will this mess up my uc payments

poppy123456

Lump sums are treated as capital, if that lump sum doesn't increase your capital to more than £6,000 it will be fine. If it does and you pay off your credit card then they will be fine too because paying off debt is allowed when claiming UC.

You would still need to make sure you report the lump sum withdrawal if you go ahead.

lainy1elaine

thanks so much for the reply

Jimm_Alumni

As Poppy says, paying off debt is fine and not seen as deprivation. So you should stay under the £6000 savings threshold.

Let us know if you do have any other questions 🙂

lainy1elaine

thank you for replying

Dipsydee

Hi.

My partner and I are on state pension and I have just started getting pension credit. I also receive enhanced pip on both elements. P.c have put me forward for h.b but I don't receive anything yet and haven't even heard anything yet either. My question is regarding savings thresholds. I'm a bit confused with all the different senerios. What is the threshold with p.c and if/when I get h.b/c.t.

OverlyAnxious

https://forum.scope.org.uk/discussion/comment/988068#Comment_988068

Hi,

The pension credit threshold is £10,000. You can still receive PC above that, but there would then be a deduction of £1 per week for every £500 over.

Housing Benefit and Council Tax Reduction are both managed by your local authority. They all have their own rules on thresholds, I've seen some at £6k, some at £10k and some at £16k. So you would have to contact them directly to ask if the information is not available on their website.

Dipsydee

OOk, Thank you.